Govt pays over MVR 1 billion to fishers so far

Maldives Industries Fisheries Company (MIFCO) on Tuesday reported it has paid more than MVR 1 billion owed to local fishers so far.

MIFCO released statistics detailing its payments to local fishers for the catch they sold, dated from November 17, 2024, to July 14, 2024.

Statistics indicate MIFCO has paid a combined total of MVR 1,000,804,175 to fishers on various occasions, with the last payment of MVR 2,009,843 made on July 14^th.

Earlier on July 01^st, MIFCO made a total disbursement of MVR 64,979,826 with another disbursement made later on July 13^th.

Following its most recent payment, MIFCO now owes just MVR 319,632 in outstanding payments to fishers.

Due to significant delays by MIFCO in paying outstanding payments, fishers staged multiple protests across Maldives including Addu City, Dhaalu atoll Kudahuvadhoo, and in Greater Male’ area as well.

Fishers called their protests off after the government announced its compliance with their demands, including a resumption of disbursing outstanding payments.

Amid these developments, MIFCO also announced its decision to drop the fixed rate for fish purchases and comply with global market rates as the corporation had been operating at a loss owing to higher export and global sale prices.

Minister of Fisheries and Ocean Resources Ahmed Shiyam said this move would allow MIFCO to pay fishers within two months from the date they had purchased fish from them.

The current administration earlier pledged it would ensure fishers receive payments for the fish they sell within 48 hours, but the promise remains stagnant in light of poor fiscal conditions of the state-run fisheries corporation and the central government – which Shiyam too, had explained.

In his presidential campaign, Maldives head of state Dr. Mohamed Muizzu promised not to drop fish purchase rates below MVR 20 per kilogram, but after the government announced MIFCO will purchase fish based on global market rates – which MIFCO said will be revised weekly – fish is purchased at rates lower than what was promised.

MIFCO said it made the move to ensure the longevity and sustainability of the fisheries company as the high export costs due to higher fish purchase rates (above global rates) were blocking it from running in profits.

Since the decision has been put to effective use, MIFCO has been purchasing lower than the promised MVR 20 per kilogram rate which has resulted in fishers complaining their earnings are no longer sufficient.

This has led to lower fisheries activity across the country, with the availability of fish becoming scarcer.