Minister Shiyam has stated that MIFCO faced a loss of MVR 1.6 billion during the first quarter of the year and that the company has always operated on a loss. He said that the price of a fish per kilo was also decreased due to the present financial crisis.
Minister of Fisheries and Ocean Resources, Ahmed Shiyam has stated today that Maldives Industrial Fisheries Company (MIFCO) has faced a loss of MVR 1.6 billion during the first quarter of 2024.
Speaking at a press conference held by the Ministry today, Shiyam said that MIFCO has been compelled to purchase fish at the universal rate starting today due to the financial crises faced by the government and MIFCO itself.
He stated that nothing can be done to improve the financial situation of the company as MIFCO has always operated on a loss.
"If MIFCO continues operating under a loss like this, there is nothing that can be done for its development as well. What we hear is MIFCO hasn't changed but fishermen's boats have," said Shiyam.
"Good point. The main reason it cannot be changed is because it needs to be operated despite the loss. After spending all income generated into MIFCO on employee salaries and fishermen's payments, there is none remaining for MIFCO's development."
Shiyam said that if fish is sold for MVR 25 per kilo, the company incurs a loss of MVR 1.2 billion.
"The State needs to give MVR 1.2 billion in subsidies for MIFCO. Such an amount therefore, is certainly not easy to give for MIFCO. Nor the government. That is not even possible." said Shiyam.
He asserted that although the administration had also wished to maintain the price of fish at MVR 20 per kg after assuming office, they were ultimately forced to accept that continuing as such is not feasible. Minister Shiyam further highlighted that if the fish is weighed at a rate of MVR 20 per kilo, fishermen's payment will delayed through the financial crisis and their families will be subjected to the consequences.
The Minister also maintained that even if the price of fish is maintained at MVR 20 per kilo, this is not an easy price for private sectors to accommodate and further recalled that businesses in the private sector were also forced to come to a standstill due to MIFCO's prices. With the new change, private sectors are also facilitated the means to profit from the fisheries industry, said Shiyam.
MIFCO had earlier announced that fish will be purchased at prices ranging between MVR 14-16 per kilo during the week.
Meanwhile, this administration had previously pledged to sustain the rate of fish per kilo at MVR 20 while also vowing to establish the means to reimburse fishermen within 24 hours of weighting the catch.
Shiyam maintained that the price of a fish can only be increased to MVR 20 once the economic state of the country sees improvements and MIFCO begins operating on profit. This will be after fish processing factories are set up and 80,000 tons of fish are processed, Minister said.
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