Buying Tuna Without Considering Market Rates Is Unsustainable, Says MIFCO

It is not financially sustainable for the state-owned Maldives Industrial Fisheries Company (MIFCO) to buy tuna from fishers without accounting for the price of skipjack tuna in the international market, the company stated last night.

As a result, MIFCO will shift from its fixed tuna purchase rate to a fluctuating weekly rate effective from 1st July.

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MIFCO explained that the new rate is designed to ensure timely payments to fishermen. The rate will be determined by the global market price of skipjack tuna and the associated export costs.

The tuna exported from the Maldives to Europe is subject to a duty of 24%.

This duty has been a long-standing obstacle preventing fishermen from receiving adequate compensation, despite the Maldives’ commitment to sustainable pole and line fishing practices.

Prior to today, MIFCO had been buying tuna at MVR 20 per kilo, resulting in a loss of MVR 8 per kilo.

The company has faced mounting pressure from fishermen nationwide due to delayed payments. Last month, protests erupted in the capital, with fishers demanding the resolution of unpaid dues.

Demonstrations in the southern island of Addu led to the temporary closure of the Addu Fisheries Complex operated by MIFCO. Fishermen were preparing to resume protests this week, awaiting a solution to their concerns.

In its latest statement, MIFCO committed to settling all outstanding payments to fishermen by the end of the day. The company disclosed that it would disburse a total of MVR 353 million to fishermen this year. Including fuel and ice subsidies, MIFCO has allocated MVR 831 million to support fishing boats in 2024