MIFCO to revise fish purchase rate

The state-run Maldives Industrial Fisheries Company (MIFCO) has decided to revise the rate at which the company purchases fish from local fishermen.

Finance Minister Dr. Mohamed Shafeeq was summoned for a meeting with the Parliament’s Public Accounts Committee on Wednesday, during which he was grilled about the state of the country’s finances.

Referring to a paper submitted by the finance minister, the Parliament’s deputy speaker, Dhiggaru MP Ahmed Nazim said that MIFCO will revise its fish purchase rate on July 26.

The paper was regarding a string of austerity measures planned by the government, including tax hikes.

Nazim said that it is important that the government announces the exact dates on which it will roll out the measures.

Shafeeq agreed, but said that he believes the dates on which the measures will be lifted is far more important than the dates on which the reforms will be rolled out.

He said that the decisions require liaising with multiple government ministries, and that the Finance Ministry will share a timeline, once the discussions are done.

Shafeeq said that discussions regarding the revision of the fish purchase rate will be held at the very next meeting of the Economic Council.

“There is an urgent need to get this done,” he said.

The decision comes as fishermen protest over the delay in millions of Rufiyaa in outstanding payments to them from MIFCO.

On September 16, 2023, the MDP administration – which went on to lose re-election later that month - raised the fish purchase rate from MVR 17 to MVR 25.

But the new administration lowered the rate to MVR 20.

It said that the MIFCO had purchased fish at a huge loss, and that it was what had created the backlog in outstanding payments, in the first place.

The 20 Rufiyaa rate is still a loss for MIFCO.

The government pays subsidies to make up for the loss to the company.

The delay in payments to fishermen sparked protests this week, in Addu City and Dh. Kudahuvadhoo.

It followed similar protests in the capital, Male’ City, last week.

The ongoing protests in Addu has forced the shutdown of the Addu Fisheries Complex (AFC), located in the city’s Hulhumeedhoo district.

MIFCO previously said it was working on resuming operations at the factory, as soon as possible.