The Maldives Industrial Fisheries Company (MIFCO) has successfully settled all pending payments to local fishermen. On Tuesday night, MVR 53 million was transferred to the accounts of fishing vessel owners, covering all due payments up to the previous Thursday. This payment has effectively cleared all outstanding amounts owed to fishermen.
This financial resolution also marked the end of a fishermen’s protest in Addu City, which had arisen due to delayed payments. The protest highlighted the growing frustration among the fishing community over the payment delays.
In a significant policy shift, Fisheries Minister Ahmed Shiyam announced that starting from this Monday, MIFCO will base its fish purchasing prices on the international market rate for frozen skipjack tuna and associated export costs. The purchase prices will be fixed and announced on a weekly basis.
President Dr. Muizzu had previously pledged to pay fishermen within 48 hours of fish purchase. However, the government has now indicated that this promise cannot be fulfilled without making MIFCO a profitable entity. The company’s decision to align its purchasing prices with international rates is seen as a step towards financial sustainability.
MIFCO’s financial challenges are notable, with the company's debt having exceeded MVR 1.2 billion, placing it on the brink of bankruptcy. The company attributed the recent payment delays to the previous government’s politically-motivated decision to buy fish at high prices without considering other financial factors ahead of the 2023 presidential election.
In the statement, MIFCO emphasized its commitment to sustainable fish purchasing and processing. The company aims to ensure that local fishermen are paid in a timely manner and on a regular basis. MIFCO is also working closely with the government to enhance operational efficiency, boost revenue, and implement strong cost-cutting measures.
The timely settlement of payments and the shift to market-based pricing are expected to stabilize MIFCO’s operations and improve its financial health. This strategic move aims to create a more sustainable and transparent relationship with local fishermen, ensuring that their livelihoods are secured.
MIFCO’s new pricing strategy reflects a broader effort to align the company’s operations with global market standards while addressing the financial realities it faces. By adopting a more market-oriented approach, MIFCO hopes to foster a more resilient and profitable business environment that benefits both the company and the local fishing community.