State Trading Organisation (STO), the parent company of Maldives Industrial Fisheries Company (MIFCO) has said canned tuna production needs to be increased to ensure fishermen are paid a fair price for their catch.
Speaking at the Parliamentary Committee on State-owned Enterprises, Managing Director of STO Hussain Amr revealed the main challenge faced by MIFCO is the capacity to produce canned tuna. Amr said MIFCO purchases 120 tonnes from fishermen every day, but has the capacity to process only 50 tonnes. He said the remaining 70 tonnes have to be sold to buyers from Thailand for a low price.
Revealing the loss MIFCO face, Amr said the company purchase a tonne from fishermen for at least USD 1,950, but has to sell the remaining stock after the daily production for foreign parties at a rate of USD 1,300 per tonne.
The managing director said MIFCO sell canned tuna at a rate of USD 0.97 per can in the international market, while foreign companies, after purchasing tuna from Maldives, sell a can in the international for USD 3.24. He revealed plans to process Maldivian tuna in Thailand, controlled by STO, to boost the profits of MIFCO.