Operations of AgroNat Discontinued

The operation of the government-owned Agro National Corporation (AgroNat) has been halted, effective yesterday.

AgroNat, established during the administration of former President Ibrahim Mohamed Solih in 2020, currently employs 182 staff members. The company announced that it has ceased all transactions with farmers and agricultural workers from 30th November.

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In September, the government made the decision to close AgroNat and transfer its operations to the Maldives Industrial Development Free Zone (MIDFZ). While AgroNat’s services are now suspended, no staff have been laid off, and employees are still reporting for work. The company is currently overseeing the transition of its operations to MIDFZ.

The initial goal of AgroNat was to promote agriculture in the Maldives and reduce the reliance on imported fresh produce.

There are over 30 State-Owned Enterprises (SOEs) in operation, but only about half are profitable. The government has been forced to allocate substantial funds from the State budget to sustain these enterprises. In an effort to reduce these costs, the government has opted to liquidate some SOEs, merge others, and reassign some as subsidiaries under more efficiently managed companies.