Government No Longer Subsidising MIFCO's Fish Purchases, Says Fisheries Minister

Fisheries and Ocean Resources Minister Ahmed Shiyam has said the government has completely stopped subsidising the Maldives Industrial Fisheries Company (MIFCO) to buy fish from fishermen, describing the move as a major shift in the country's fisheries policy.

Speaking in the People's Majlis on Tuesday, Shiyam said the government is "not giving a single rufiyaa" to MIFCO to purchase fish, adding that the aim is to make the state-owned company financially self-sufficient.

"We are now not giving a single rufiyaa to MIFCO to buy fish. Not a single rufiyaa. This is because of these policies. We want MIFCO to be a company that stands on its own feet. To be a company that operates independently. The President worked towards that path from day one," Shiyam said.

The minister made the remarks while answering questions from MPs about the government's fisheries policy. He said the administration is focusing on expanding fish processing and exports instead of relying on government subsidies.

Shiyam argued that the fisheries sector had suffered from years of underinvestment. He noted that MIFCO's fish processing facility in Felivaru has been operating for around 40 years, despite repeated promises by previous governments to develop the industry.

He also criticised the previous administration's decision to increase the fish purchase price to MVR 25 per kilogram, saying the policy required the government to pay MVR 13 per kilogram to MIFCO as a subsidy.

Instead of spending public funds on subsidies, Shiyam said the current administration is investing in infrastructure to strengthen the fisheries sector and increase export capacity.

He said the Maldives currently has a fish processing capacity of 105 tonnes, including facilities operated by MIFCO and the private sector.

According to Shiyam, construction of new fish processing facilities in F. Nilandhoo and GDh. Fiyoari is progressing rapidly, while work is also underway to double the processing capacity at the Felivaru plant.

"God willing, when these projects are completed, this capacity will be tripled. Exports will be increased," he said.

The minister also claimed that previous governments subsidised MIFCO's fish purchases mainly to secure political support, whereas the current administration has focused on creating a financially sustainable fisheries industry.

He added that when the current government took office, private companies involved in the fisheries sector were struggling to remain competitive. However, he said the business environment has since improved, allowing both MIFCO and private companies to expand.