The state-owned fisheries company, MIFCO, has decided to increase the fish purchasing price to MVR 18.50 per kilogram.
This adjustment returns the price to the rate maintained by the company prior to the conflict in Iran. Following the start of that conflict, the purchase price for skipjack tuna was reduced to MVR 17.00.
At the time, MIFCO attributed the price reduction to rising global fuel costs, which led to increased operational and business expenses, negatively impacting the company’s overall operations.
While MIFCO has now raised the price to MVR 18.50, the company said in September 2024 that purchasing fish at even MVR 16.00 per kilogram resulted in a loss. Compared to that period, there has been no increase in skipjack tuna prices on the global market.
According to MIFCO, government subsidies are required even to sustain a purchase price of MVR 16.00.
The company continued to incur losses during the year the prices were lowered. But the year was also marked by some of the lowest fish catch rates in recent history.
Factors contributing to the decline in fishing activity that year included a buildup of unpaid dues to fishermen, which led several vessels to halt their operations.
Since then, the government has addressed these concerns, collaborating with the Bank of Maldives (BML) to establish a solution for the delays in payments to fishermen for their catch.
