The government has decided to reduce the fish purchasing price of the state-owned Maldives Industrial Fisheries Company (MIFCO) with effect on July 1 (next Monday).
Citing a paper approved by the government's Economic Council and submitted to the Parliament, Deputy Speaker Ahmed Nazim said at yesterday's meeting of the Public Accounts Committee that the fish purchasing price was to be reviewed after July 24.
The paper that he referred to had been sent to the Parliament before Finance Minister Dr. Mohamed Shafeeq appeared before the Public Accounts Committee yesterday.
"This talks about MIFCO, that the fish purchasing price will be reviewed after July 24. However, we want again for this to be done after setting a deadline. That's how we can start making those savings," Nazim said.
Adhadhu has learned from a credible source that the government has decided to set a purchasing price of MVR 15 per kilo for MIFCO with effect on July 1.
MIFCO currently buys fish at the rate of MVR 20 per kilo.
At the current rate, the company faces a loss MVR 7 per kilo of raw fish that it exports. The shortfall is plugged with government subsidies. If the purchasing price is reduced to MVR 15 per kilo, the government would have to subsidise at MIFCO at the rate of MVR 2 per kilo.
Fishermen protested last week over MVR 50 million owed as outstanding payments for fish bought by MIFCO. Adhadhu understands that the company is in the process of clearing the payments.
The government's decision to reduce the fish purchasing price comes despite a campaign pledge by President Dr. Mohamed Muizzu to ensure that the price does not fall below MVR 20 per kilo.
