Minister of Fisheries and Ocean Resources Ahmed Shiyam has expressed concerns over the potential annual losses reaching billions for the Maldives Industrial Fisheries Company Limited (MIFCO) if it continues to purchase fish at USD1.6 per kg. He made the statement in response to the government's decision to lower the fish purchase price from USD1.6 per kg to USD1.3 per kg.
Speaking to PSM News, Minister Shiyam highlighted that the previous administration had set the purchase price at USD1.6 per kg, a decision perceived by fishermen as politically motivated. He emphasised that fishermen prioritise prompt payment for their processed fish over price increases.
Additionally, Minister Shiyam said the fishermen want to get paid quickly after processing the fish rather than increasing the price of the fish. As such, he said that the administration under President Dr. Mohamed Muizzu's leadership has paid more than USD13 million to the fishermen since assuming office.
Furthermore, Minister Shiyam noted that maintaining the purchase price at USD1.6 per kg would necessitate the state to provide MIFCO with USD71 million in subsidies, prompting the government to reassess the price to mitigate the financial losses of MIFCO.
The previous administration had raised the fish purchase price from USD1.1 per kg to USD1.6 per kg during the presidential election campaign held in 3032. After review, the new price is set at USD1.2 per kg, with a commitment from the government not to reduce it below the level.