In fact, according to a report released Wednesday by the United Cannabis Business Association that was reported on by the Los Angeles Times, California’s marijuana illicit market is three times larger than the regulated industry established by the 2016 referendum. The audit found that there remains about 2,835 unlicensed dispensaries and delivery services throughout the state, compared with only 873 licensed marijuana dealers. 

The figures were highlighted as part of an effort by the United Cannabis Business Association, which represents licensed pot dealers in California, to crack down on Weedmaps, an app that allows users to locate dispensaries near them. 

The group contends that Weedmaps is still rife with listings for illicit marijuana dispensaries, despite the company’s pledge to remove them from the app. 

In a letter Wednesday to California Gov. Gavin Newsom (D), United Cannabis Business Association president Jerred Kiloh called on regulators to enforce Assembly Bill 97, legislation passed and signed this year that enables the state to levy $30,000 a day fines for unlicensed dealers. 

The bill took effect on July 1.

In the letter to Newsom, Kiloh drew attention to the string of recent vaping-related deaths.

“The severity of this situation cannot be underscored. We know too well the dangers of the unlicensed and unregulated market,” Kiloh said. “Just last week, after a series of deaths, the federal Food and Drug Administration (FDA) formally warned consumers to avoid vapes containing THC. While still under investigation, all 57 cases so far in California have involved purchases from unlicensed “pop-up” shops.”

“This outbreak serves as a tragic reminder of the dangers that the unlicensed industry poses to consumers. Licensed retailers are required to adhere to strict testing mandates that help prevent incidents like this from happening – the reality is, unless you are buying from a legal dispensary there is no guarantee of safety.”

Given the volume of illegal dispensaries present on Weedmaps, Kiloh claimed that the “California could levy fines against the platform of up to $85 million per day” if it were to enforce AB97.

“There’s simply no reason to wait, Californians are in danger,” Kiloh said. 

Weedmaps promised to crack down on the illegal dispensaries shown on the platform in an announcement late last month, saying it was “restricting the use of its point of sale, online orders, delivery logistics, and wholesale exchange software-as-a-service (SaaS) platforms to licensed operators exclusively.” 

In his letter Wednesday, Kiloh said that the legislation should be enforced to ensure that “Weedmaps’ toothless announcements are followed with real action.”

New Delhi, India, and Karachi, Pakistan, have ranked among the top three places for cannabis consumption according to data recently released, despite laws against the drug in both places.

Germany-based media campaign outlet ABCD and self-growing cannabis tech company Seedo reported the findings in its updated Cannabis Price Index after aggregating data from 120 cities around the world.

The report found New York had the most consumption last year at 77.44 metric tons of weed, while Karachi, Pakistan, came in second with 41.95 metric tons and New Delhi, India, in third with 38.26 metric tons. Los Angeles came in fourth place, and Mumbai, India, was sixth.

Toronto also made the list with 22.7 tonnes of weed consumed last year to make it to the tenth spot. Cannabis-notorious Amsterdam came in 56th place, consuming 3.6 tons.

The figures were derived from estimates from the UN Office of Drugs and Crime.

Price may have played a factor in India’s high consumption rates.

New Delhi and Mumbai ranked 10th and 11th respectively for the cheapest places to buy weed in the world, with a gram going for $4.38 in New Delhi.

Surprising results

Some of these results are surprising given strict laws against cannabis in some of the places.

For example, both Pakistan and Egypt, which had cities in the top ten of consumption, have the death penalty for cannabis possession, according to Seedo CMO Uri Zeevi.

“That illegal cannabis use is so high in countries that still carry the death penalty, such as Pakistan and Egypt, those in power ought to see how desperately new legislation is needed,” Zeevi said in a statement.

“By removing the criminal element from marijuana, governments will then be able to more safely regulate production, take away power from underground gangs, and as we’ve shown in this study, generate huge tax revenues.”

The study found that Cairo, Egypt would gain the most revenue if it were to tax cannabis at the current rate for cigarettes, at $384.87 million. Cairo had the fifth most consumption of cannabis.

The laws for cannabis in India are more complex. The cultivation of hemp is allowed for industrial purposes, but most intoxicating cannabis products are illegal under the Narcotic Drugs and Psychoactive Substances Act of 1985.

Consumption can carry jail time of up to six months or a fine of Rs10,000.

However, cannabis does play a significant role in India’s culture and dominant religion, Hinduism.

Hindu religious texts have mentioned cannabis and Bhang, a popular cannabis drink, can be found sold in the streets and featured in the Hindu festival Holi. It is legal in the country, an exception to the laws against cannabis.

Makers and sellers of CBD products should be conforming to the European Union’s Novel Food regime introduced in January this year.

But, as things stand, just one firm Cannabis Pharma, a Czech Republic company, has made an application to the European Food Safety Authority (EFSA), with a handful of others said to be in the pipeline.

The Centre for Medicinal Cannabis in the U.K., is currently working on an industry kitemark scheme – The Cannabinoid Industry Quality Charter – which will conform with Novel Food Regulations. 

Minimum Cost Of £200,000

A spokesperson for the CMC explained how the Novel Food authorisation process works: “We estimate that there will be a minimum cost of £200,000 in putting together a credible Novel Food application, but that could be a lot more depending on whether EFSA request animal studies and, or toxicology studies. 

“A company would submit their application which will then enter a 16-month review process. This timeline is paused whenever EFSA requests further information which will prolong the time and increase expenses.”

With the process being so costly and time-consuming it will be out of the financial reach of many smaller CBD retailers, and may pose a threat to the livelihoods of many small and medium size manufacturers. 

One for the CBD Manufacturers

The CMC spokesperson added: “Manufacturers of raw materials are in a prime position to apply for Novel Foods authorisation as they will be able to compliantly sell to companies further downstream. 

“So companies from this category will be applying, more likely so, than retailers, and this will allow the CBD retailers, who use their extracts in their products, to conform to the Novel Food regime. So, the smart approach for a smaller operator would be to source from a supplier who already has a Novel Food licence.”

CBD Testers has spoken to some retailers who are being asked to contribute to the cost of a Novel Food authorisation by larger companies.

But the CMC spokesperson believes this will ‘most likely’ not happen, adding: “There will be a huge commercial advantage to these suppliers, so the cost of the application pales in comparison to the size of the opportunity.” 

The E.U. Novel Food Regulations

Under European Union law, food that has not been consumed to a significant degree by humans in the E.U. before May 15, 1997, when the first Regulation was introduced, is considered as Novel Food. These are controlled in a stricter manner than regular foods and in January this year the EFSA classified CBD as a Novel Food.

This prompted outrage from the CBD industry and many examples of the use of cannabis and hemp, as foods, have subsequently been highlighted by the cannabis community.

Food producers can only sell a Novel Food in the 28-member E.U. market following a successful authorization process. There are three routes by which an apparently novel food may be approved or authorized under the Novel Food regulation:

• By showing significant history of use in the EU prior to 1997
• Demonstrating the food is a ‘traditional’ one from a third country, where a history of safe food use for at least 25 years can be demonstrated. For example; chia seeds, and noni fruit juice.
• And finally, a full application based on submission of a dossier for a Novel Food authorization.

Check back with us for more updates as these regulations continue to develop. 

The U.S. Drug Enforcement Administration wants to increase the amount of marijuana produced for research next year – and by quite a margin.

The DEA is proposing a boost from 2,450 kilograms in 2019 to 3,200 kilograms in 2020. This year’s level was also quite a jump on 2018, when it was just 443 kilograms.

“This will meet the need created by the increase in the amount of approved research involving marijuana,” says a statement from the Administration “Over the last two years, the total number of individuals registered by DEA to conduct research with marijuana, marijuana extracts, derivatives and delta-9-tetrahydrocannabinol (THC) has increased by more than 40 percent, from 384 in January 2017 to 542 in January 2019.”

In other recent cannabis news from the DEA, last month it announced DEA registration would no longer be required to grow or manufacture certain types of cannabis, specifically hemp – but it won’t happen right away. It also said it would “facilitate and expand” scientific and medical marijuana research – and we see an indication of that with the announcement of proposed increased production.

However, the Scottsdale Research Institute (SRI) doesn’t appear to be particularly impressed with its efforts.

While the DEA is getting with the times somewhat, it’s still persisting in referring to marijuana as “marihuana” in some of its documentation. It seems continued use of the word has its roots in the Marihuana Tax Act of 1937, which was the first step towards prohibition in the USA.

On a related note, the DEA is also proposing to reduce the amount of certain opioids produced next year – fentanyl by 31 percent, hydrocodone by 19 percent, hydromorphone by 25 percent, oxycodone by 9 percent and oxymorphone by 55 percent.

“Combined with morphine, the proposed quota would be a 53 percent decrease in the amount of allowable production of these opioids since 2016,” says the Administration.

The reduction follows the enactment of the Substance Use-Disorder Prevention that Promotes Opioid Recovery and Treatment for Patients and Communities Act last year (and yes, that’s the full name of the Act – you can view it here).

The prescription opioid epidemic has wreaked a very heavy toll in the USA. According to the National Institute on Drug Abuse; prescription opioid overdose deaths rose from 3,442 in 1999 to 17,029 in 2017.

In addition to the reduction in production, cannabis has shown promise as a tool in tackling the USA’s prescription opioid crisis.