MSPEA raises concerns over govt factory at Kandu Oggiri
MSPEA highlighted its concerns regarding the government's decision to build a fish processing facility in the Male area
Maldives Seafood Processors and Exporters Association (MSPEA) on Wednesday expressed concern over the government’s plan to establish a seafood processing factory at K. Kandu Oggiri.
In a statement, the MSPEA highlighted its concerns regarding the government's decision to build a fish processing facility in the Male area and pack fish for third parties.
“The fishery has declined day by day to the point where it is no longer feasible for factories to operate,” the statement said.
According to the MSPEA, the Ministry of Fisheries and Ocean Resources announced the plan at the last fisheries forum. The association raised concerns about the viability of the project, given the financial difficulties previously faced by a similar government-owned facility in Kandu Oggiri.
The Maldives Industrial Fisheries Company (MIFCO) previously operated a large fish processing plant in Kandu Oggiri before it was handed over to the Maldives National Defence Force (MNDF) last year. The site faced operational challenges due to poor port conditions and sedimentation, making it difficult for boats to dock. The previous government had awarded Maldives Transport and Contracting Company (MTCC) a MVR 35 million project to dredge the area and develop the port.
Following the transfer of Kandu Oggiri to the MNDF, the President’s Office requested the Housing Development Corporation (HDC) to allocate land in Hulhumale for MIFCO to establish a similar facility. However, the project was halted due to the financial losses incurred by the previous factory.
The MSPEA stated that its members, who process and export large fish, already pack fish for third parties. Given the current challenges in the fishing sector, the association believes that government investments should focus on supporting the broader fishery rather than establishing a new processing facility.
“If the operation of such a factory becomes unsustainable and government-owned companies receive subsidies, it could create an imbalance in trade, affecting private fish processing companies and potentially leading to their closure,” the MSPEA said.
The association urged the government to consult the private sector before making such investments, emphasizing the need to consider the potential financial impact on existing businesses in the industry.
