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Senator backs study of supply and demand in Massachusetts cannabis market to address price collapse and oversupply
Summary
Senator Pallanos and industry witnesses urged the committee to require a comprehensive economic analysis of cultivation and market capacity (S.100) to inform licensing and stabilization policies.
Senator Paul P. Pallanos (testimony filed by sponsor) and several industry witnesses urged the Joint Committee to favorably report S.100, a bill to commission a comprehensive economic study of supply and demand for cannabis cultivation in Massachusetts.
Senator Pallanos told the committee the sector is at a "critical turning point" and described rapidly falling retail prices, shuttered businesses and concerns about oversupply. He said a 2024 Whitney Economics analysis estimated the state’s licensed cultivators could produce more raw product than state demand by a wide margin, driving down prices and harming growers.
Why the study: Supporters said Massachusetts has not conducted a full analysis of market capacity and production potential and that the CCC has been licensing without a clear, data-driven view of demand. A formal economic analysis would instruct the commission and the legislature on whether to set licensing targets, adjust permit issuance or adopt other stabilization measures.
Industry testimony: The Massachusetts Cannabis Coalition and independent retailers supported the idea of a study and asked that its findings inform licensing decisions. Ryan Dominguez, executive director of the coalition, said the industry also needs statutory relief in areas such as agent badges, testing and ownership rules, but that licensing must be driven by data.
Next steps: The committee asked for more detail about the study's scope: which data would be examined, over what timeframe, and how the results would be used to shape licensing. Witnesses urged the legislature to require the CCC to use the analysis as the basis for any future licensing targets.
