Exporters voice concern over proposed fish purchase price hike

Private businesses in the fisheries sector have raised alarm over the government’s plan to increase the purchase price of yellowfin tuna to MVR 20 per kilogram.

In a statement on Thursday, the Maldives Seafood Processors and Exporters Association (MSPEA) said President Dr Mohamed Muizzu had revealed discussions with the Maldives Industrial Fisheries Company (MIFCO) to introduce the new rate. 

According to MSPEA, the proposed price is unsustainable for international markets and could force industry players into bankruptcy. The association warned that factories might close, echoing losses suffered in the run-up to the 2023 presidential election when fish purchase prices were temporarily raised.

“The government’s increase in fish purchase prices for temporary political gain is the biggest challenge the industry has faced in the past. The losses incurred by private companies and MIFCO due to the 2023 presidential election are still unrecoverable,” MSPEA said.

The association highlighted six risks if the purchase price is fixed at MVR 20 per kilogram; decline in fish exports, reduced dollar inflows, loss of investor confidence, reduced financing opportunities from banks, erosion of Maldives’ international market share, and foreign competitors capitalizing on the situation.

MSPEA called on the government to find an “immediate and sustainable solution” that considers market realities.

President Muizzu, however, reiterated earlier this week during a visit to Dhiggaru that the MVR 20 purchase price remains a key pledge. He said the change would not be sudden but implemented in a sustainable manner, with ongoing discussions with MIFCO.