Fisheries Minister Ahmed Shiyam has stated that subsidies are no longer being given to MIFCO to purchase fish and that the government is no longer paying MIFCO at all.
While answering a question from an MP, the minister said policy reforms need to come about to increase fish export, with President Dr. Mohamed Muizzu taking office with those policies in mind.
While stating there has been negligence toward the fishing industry for a long time, the minister highlighted that Felivaru has been operating a singular factory for the last 40 years. According to him, even though past governments have spoken about progress in fisheries, no practical steps have been taken.
He criticized the policy reforms brought about by the previous government as its term was coming to a close, where one kilogram of fish was to be purchased for MVR 25, and went on to say that the government had to pay MVR 13 per kilogram when purchases were made by MIFCO for the MVR 25 price. The minister pointed out that if 123,000 tonnes of skipjack tuna were being purchased, the government would have to pay MIFCO millions in subsidies.
"I wonder why billions have not been spent to establish infrastructure. To establish factories," said the minister.
The current fish processing capacity in Maldives totals 105 tonnes with Felivaru and private companies combined. The minister said that unlike previous government's, the current government's aim is to change that, and to increase fish processing capacity. Minister Shiyam said work is hastily being done to double the capacity of Felivaru by establishing fish processing options at F. Nilandhoo and GDh. Fiyoari.
"Hopefully when the projects are finished, fish processing will triple. Export will increase," as was said by the minister.
As per the minister, previous governments offered subsidies to MIFCO and bought fish from fishermen in an attempt to secure votes and even so, the current government has made MIFCO capable of purchasing fish without government subsidies.
"We do not provide funds to MIFCO at all now. This is because of policy reforms. We want MIFCO to become a company that can work by standing on its own two feet. That is the path President Muizzu has been working on since the first day," said Minister Shiyam.
The minister continued by stating that when the current government took office, the fisheries industry had gone to a point where private companies were almost shut down. However, the minister said a proper business environment is now present, with the industry moving forward along with private companies.
"Fish exports will hopefully increase. Revenue from fish exports will increase as well. And I believe the policies will allow an increase in how much money fishermen can earn."
