Fish exporters warn industry could collapse without govt aid
Private companies have been forced to stop buying fish due to the government's increase in fish purchase prices.
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By
Ahmed Sadhoof Moosa
The Maldives Seafood Processors and Exporters Association (MSPEA) on Wednesday warned that the entire fishing industry could collapse if private companies do not receive government assistance.
Private companies in the fishing industry are expressing concern over the increase in the purchase price of fish by the state-owned fish company MIFCO to MVR 25 per kg from September 16.
MSPEA, an association representing seafood processors and exporters, said in a statement on Wednesday that private companies have been forced to stop buying fish due to the government's increase in fish purchase prices.
As a result, private factories have found it difficult to source fish at a price that can meet guaranteed foreign orders, putting the relationships of such companies with international markets at risk, the statement said.
The statement said the loss to MIFCO due to the increase in fish purchase prices will exceed MVR 1 billion.
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MIFCO is subsidised by the government
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The government budget also gives a large amount to MIFCO
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Private businesses are suffering from lack of subsidies
“If a subsidy is to be given, it should be directly to the fisherman instead of as a benefit to a particular company,” the statement said.
The MSPEA said that without government assistance to overcome the challenges faced by private companies due to the increase in fish purchase prices, private companies in the seafood trade will come to a halt. The association also said that during a good fishing season, fishermen will face difficulties in selling all the fish they catch.
“The association and private companies are in discussions with the relevant government agencies,” the statement said.
