Why did the Canadian government shift from supplying dried cannabis itself to allowing licensed producers?

In 2002, there were 477 individuals in Canada who could legally possess cannabis for medical purposes. By 2012, this jumped to almost 22,000 people, overwhelming government resources and facilities

In June 2013, the federal government replaced the MMAR with the Marihuana for Medical Purposes Regulations (MMPR), essentially setting up the guidelines for a commercial Licensed Producer system. That system became the basis for the recreational cannabis industry as well when the Cannabis Act came into effect October 17, 2018.