AgroNat not liquidated, transferred as subsidiary, president says

AgroNat company, established during former President Ibrahim Mohamed Solih's administration to promote agriculture and facilitate the sale of farmers' products, will not be liquidated, but its operations will be transferred to another entity, President Mohamed Muizzu said on Wednesday. However, documents obtained by Atoll Times indicate conflicting information regarding the company's dissolution and the progress of the transfer.

The decision to liquidate AgroNat and transfer its operations to the Maldives Industrial Development Free Zone Company was initially announced in September. The company was declared liquidated, with a cut-off date set for November 30, 2024. Despite this, President Muizzu clarified that AgroNat would not be dissolved but converted into a subsidiary of the Maldives Industrial Development Free Zone Company.

“We are not dissolving AgroNat. Some claims regarding its dissolution are inaccurate,” President Muizzu stated. “AgroNat will become a subsidiary of the Maldives Industrial Development Free Zone Company, a 100% government-owned entity.”

The president emphasised that AgroNat's work would continue and be expanded to strengthen agricultural development. He acknowledged the requests from the residents of GDh. Nilandhoo to facilitate the sale of farmers' produce and committed to finding a solution, particularly before Ramadan.

"Whether through AgroNat or another mechanism, we aim to establish a proper and permanent solution," he said.

President Muizzu underscored the government’s commitment to expanding agriculture and diversifying the Maldives' economy. He noted the importance of improving investments in agriculture and enhancing opportunities for local farmers.

“Agriculture is a critical sector for diversifying the economy. Our policy focuses on significantly improving and expanding this industry,” he said.

AgroNat’s financial transactions were suspended in November 2024 as part of its restructuring process. The company is currently operated by the Maldives Fund Management Corporation. Documents reveal that the Finance Ministry instructed the Fund Management Corporation to notify employees of their dismissal unless they could be transferred to the free zone company.

The state had issued MVR 40 million in capital to run AgroNat before its restructuring was announced in September. Despite the suspension of business transactions, employees have continued to receive salaries.

President Muizzu stated that the government remains committed to developing agriculture and has assigned a dedicated ministry to oversee these efforts.

“Agriculture remains a priority for the government. We are working towards making it a well-managed and scalable industry,” he said.