The UK's decision to cut tariffs on fish imported from the Maldives has created a more competitive market for fish in the country, Fisheries Minister Ahmed Shiyam said.

Shiyam said Maldivian fish exporters have gained a 20 percent advantage following the tariff reduction, giving companies greater room to increase the prices they pay fishermen.

"So now Horizon Fisheries, Ensis Fisheries and MIFCO are buying fish from fishermen at good prices. Now we all believe that a real market, a competitive market for fish has been created," he said.

Shiyam made the remarks in parliament while speaking about the government's efforts to develop the fisheries industry. He was summoned to answer a question from Velidhoo MP Mohamed Abbas, but as the question session was suspended, Parliament Speaker Abdul Raheem Abdulla allowed the minister to speak freely on the issue.

Shiyam said most Maldivian fish exports to Europe are sent to the UK and that successive governments had spent 14 years attempting to reduce tariffs imposed on Maldivian fish.

"We have been trying to reduce taxes from Europe and the UK for 14 years. The result of efforts without intention, without good intentions, has always been delayed. No tariffs have been suspended, no tariffs have been reduced," he said.

He said the UK was the largest European market for Maldivian fish when the tariff reduction was introduced.

"We are exporting about £18 million worth of fish to the UK," he said.

Responding to a question about why the Maldives Industrial Fisheries Company (MIFCO) had not increased its fish purchasing price, Shiyam said the company currently pays MVR 20 per kg, increasing the price to MVR 22 on some days.

He said private companies account for most Maldivian fish exports to the UK and are already paying fishermen competitive prices.

"Private companies are now buying for MVR 21 or MVR 22, not MVR 20, these days," he said.

According to Shiyam, the main obstacle to securing higher prices for Maldivian fish is the limited quantity of value-added fish products. He said the government is working to address this by expanding canning and storage capacity.

When the current administration took office, MIFCO was processing about 50 tonnes of fish a day. The company is now working to increase its canning capacity to 300 tonnes a day, Shiyam said.

MIFCO currently has storage capacity for 9,000 tonnes of fish, which the government plans to increase to 25,000 tonnes, he added.