Fisheries Minister Ahmed Shiyam has said that the government no longer provides subsidies to MIFCO for the purchase of fish from local fishermen.
Responding to questions from MPs, Shiyam noted that when the previous administration set the fish purchase price at MVR 25 per kilogram, the government was providing a subsidy of MVR 13 for every kilogram purchased. However, he confirmed that this practice has now been discontinued.
"I can confidently say today that the government does not provide a single rufiyaa to MIFCO for the purpose of purchasing fish. Not a single rufiyaa is given to buy fish," Shiyam said.
Shiyam highlighted that previous administrations had consistently discussed the need to find ways to add value to fish products to strengthen the industry. He argued that the benefits would have been far greater if the funds spent on purchasing subsidies had instead been invested in establishing fish processing factories.
The minister pointed out that for the past 40 years, the Maldives relied solely on the 50-ton production capacity at the Felivaru facility for fish canning. He added that even when including private facilities, the total processing capacity of the country stands at just 105 metric tons.
However, he pledged that the current administration would transform this.
"God willing, we are establishing facilities in Faafu Atoll Nilandhoo and Gaafu Dhaalu Atoll Fiyoaree, while doubling the existing 50-ton capacity at Felivaru to 100 tons. Once these projects are completed, we will have tripled the fish processing capacity in the Maldives," Shiyam said.
Shiyam concluded that these changes would increase the volume of processed fish exports from the Maldives, ultimately leading to higher earnings for local fishermen.
