MIFCO announce weekly fish purchase rate update

Maldives Industrial Fisheries Company (MIFCO) on Sunday, announced its decision to update fish purchasing rates on a weekly basis.

MIFCO in a statement on Sunday said, purchasing fish from local fishers without referring to market rates, was not financially sustainable for the company's fish processing and export activities.

The company incurs more expenditure, which include paying to fishers, and cost of processing and sales, compared to its earnings after selling the products in global markets.

Owing to continued deficits, MIFCO generally acquired cash injections through loans and government support.

MIFCO's decision to shift to fluctuating prices based on market rates, it said is aimed towards achieving a permanent solution, and said the changes will be effective from Monday, July 01st onward.

The purchase rates of MIFCO will based on present market rates and export costs, with the prices reviewed on a weekly basis.

MIFCO also assured to pay the remaining outstanding total to local fishers on Monday, after which state would have settled MVR 353 million to fishers so far in 2024.

"Besides this, MIFCO has paid another MVR 389 million for fish sold, while it has dibursed a total of MVF 831 million inclusive of fuel and ice credit," MIFCO's statement read.

MIFCO's announcement after the decision was revealed at the Public Accounts Committee of the parliament last Wednesday, where Minister of Finance Dr. Mohamed Shafeeq assured to price reviews will be discussed at the next Economic Council meeting.

With delays in settling the pending total to fishers, an emergency motion was submitted last week to the parliament seeking an expedited solution for the issue.