Gov’t Ends MIFCO Fish Purchase Subsidy, Fisheries Minister Says

The government has completely stopped providing subsidies to the Maldives Industrial Fisheries Company (MIFCO) for fish purchases, Minister of Fisheries, Agriculture and Ocean Resources Ahmed Shiyam has said.

Speaking during a Parliament sitting today while responding to questions from lawmakers on the fisheries industry, Shiyam said the government’s policies to reform the sector were already showing positive results.

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The minister said past policies focused heavily on increasing fish exports without sufficiently expanding processing capacity within the Maldives. He noted that for nearly four decades, processing activities had relied primarily on the facility established in Felivaru, with limited efforts to increase capacity nationwide.

Shiyam said when the previous administration increased the fish purchase price to MVR 25 per kilogramme, the state had to provide billions of rufiyaa in annual subsidies to MIFCO, including MVR 13 per kilogramme to support fish purchases at that rate.

He questioned why those funds had not been used to expand fisheries infrastructure and said ongoing projects across the country would increase the Maldives’ existing fish processing capacity of 105 tonnes threefold.

Shiyam said successive governments had acknowledged the need to increase revenue from the fisheries sector through value-added exports, but claimed that previous administrations had failed to implement measures to achieve this. He also alleged that fish purchase subsidies had been maintained for political reasons, while stressing that the current government no longer provides any funds to MIFCO for purchasing fish.

The minister said MIFCO’s operations had been streamlined under the government’s new approach, with greater emphasis placed on value-added processing and expanding industry capacity.

As part of these efforts, Shiyam said a contract has been awarded to establish a 100-metric-tonne yellowfin tuna canning factory in Hulhumalé. He added that the facility is expected to be completed and operational within 18 months.

Shiyam said the government’s fisheries development strategy involves both state-owned and private sector companies, with the aim of creating a more comprehensive and sustainable industry.