Minister of Fisheries, Agriculture and Ocean Resources Ahmed Shiyam has stated that the Maldives Industrial Fisheries Company Limited (MIFCO) is now financially self-sustaining, and the government no longer provides subsidies to cover its operational costs.
When the current government took office, MIFCO was in dire financial difficulty, including issues affecting payments to fishermen and significant operational losses. The government prioritised reforming and strengthening MIFCO’s management to address problems in the fisheries sector.
Speaking on PSM News’ Raajje Miadhu programme, the minister stressed that MIFCO should not be funded by taxpayers indefinitely, and public money should be used more responsibly. He noted that the government previously spent heavily to subsidise MIFCO’s fish purchases, at the rate of USD 0.84 per kilogram of fish, adding up to about USD 71.34 million annually. However, these subsidies have now been phased out following reforms, he said.
According to the minister, currently, the only remaining subsidy in the sector is fuel support for fishermen. Noting that fishermen have always been subsidised for fuel, the minister said the government took steps to protect the fisheries sector from the unprecedented rise in fuel prices due to the Middle East war. This move allows fishermen to go back out to sea, and supports over 17,000 families, he said, adding that the fuel subsidy is extended to fishermen only and excludes MIFCO’s fuel purchases. MIFCO purchases fuel from Fuel Supplies Maldives (FSM) at the same rate as other companies, and operates independently in this regard, he clarified. The fish company now operates in a competitive market, setting its own fish purchasing prices, he said.
The minister attributed MIFCO’s strengthened operations to management reforms, led by the Fisheries Ministry and Ministry of Finance and State Enterprises under presidential guidance.