Industry group opposes move to hike fish price to MVR 20 per kilo

Private companies in the fisheries sector have raised concerns over President Mohamed Muizzu’s announcement that the state-owned Maldives Industrial Fisheries Company (MIFCO) will raise the purchase price of fish to MVR 20 per kilogram “in a sustainable manner.”

The Maldives Seafood Processors and Exporters Association (MSPEA) said in a statement on Thursday that the proposed increase could threaten the long-term sustainability of the fishing industry and undermine the country’s seafood exports.

According to the association, a purchase price of MVR 20 per kilogram would make exports less competitive in foreign markets and could force private companies out of business. It also warned that MIFCO, which has been operating at a loss even with the current purchase price of MVR 16, would face further financial strain.

The MSPEA statement added that previous government interventions in fish pricing, including a temporary hike ahead of the 2023 presidential election, had already forced some private processors to close operations.

The association outlined several potential consequences of the planned price increase, including:

The association further noted that private companies play a vital role in purchasing fish from regions not serviced by MIFCO, and warned that fishermen may not have equal access under the current pricing policy.

It urged the government to consider an equitable subsidy model that benefits all stakeholders—including fishermen, private processors, and exporters of blackfin and yellowfin tuna—while ensuring the growth of investment and exports on a sustainable basis.

President Muizzu, who made the announcement earlier this week, did not specify a timeline for implementing the new purchase price.

Currently, MIFCO adjusts its fish buying rates weekly based on international market conditions, with the average rate standing at MVR 16 per kilogram.