State-owned enterprise Maldives Industrial Fisheries Co. Ltd (MIFCO) has announced that it will commence buying fish from local fishermen at global market prices starting today. This move marks a significant shift from the previously set rates determined by the government.
In a statement released yesterday, MIFCO highlighted that the costs associated with purchasing, processing, and selling fish far exceed the income generated from international market sales. The company has been managing these expenses through loans and government support.
Currently, the global market rates for a kilogram of fish range between MVR 18 and 20. MIFCO disclosed that it has paid MVR 353 million to fishermen thus far, and an additional MVR 389 million has been issued from the company’s revenue for the fish purchased from them. Additionally, MIFCO has issued MVR 831 million to fishing vessels this year, covering fuel and ice costs.
The company stated that continuing to buy fish without considering market prices is financially unsustainable. To ensure continuous payment to fishermen, MIFCO will begin purchasing fish based on international market prices for skipjack tuna and the associated export costs. The new prices will be announced weekly by the company.
MIFCO is also collaborating with government institutions to implement robust measures aimed at reducing its operational costs. Historically, MIFCO has bought fish from local fishermen at government-determined prices, which did not reflect international market rates. Notably, around the most recent presidential election, the previous administration increased the price paid per kilogram of fish to MVR 25, a rate that was later reduced to MVR 20 by the current administration.
Despite the reduction, substantial government subsidies, amounting to over MVR 400 million annually, are still required to pay fishermen. This has led to frequent delays in payments to fishermen, prompting numerous protests since the current administration assumed power. Experts have called for aligning the purchase price with international market rates to address these issues.
MIFCO’s new policy aims to ensure timely payments to fishermen by aligning purchase prices with global market rates, thereby reducing reliance on government subsidies and addressing the financial challenges faced by the company.
