Can’t buy fish at MVR 25; fishermen don't want state burdened: Minister

Although during the presidential election campaign, the previous government abruptly fixed MVR 25 per kg as the purchase price of fish by MIFCO, new fisheries minister Ahmed Shiyam said on Saturday that the fishermen also know that the price is too high and that the fishermen really only want a price that will be worthy of their catch rather than a high price that the state is burdened with.

The state-owned fisheries company MIFCO started buying fish at MVR 25 per kg on September 16 during the second round of the presidential election campaign. The price of fish was increased as other candidates promised to do the same.

Speaking on PSM's ‘Raajje Miadhu’ program on Saturday, he said the purchase price of fish by MIFCO has been increased by MVR 8 per kg. The enlargement was a huge burden on the state, as MIFCO was operating mostly on subsidies.

The minister said that while a government company is able to do so having been subsidized, it is not something that private companies can do.

"Today, the private sector cannot buy fish for MVR 25. There is not that much backup in the private sector involved in the fish business in Maldives," he said.

The minister said it was the responsibility of the government to find a solution in such a situation.

“We believe that by talking to all parties on the price issue, we can keep it at a level where it is not difficult for the fishermen and others,” he said.

The Minister said that he had been dealing with the fishermen even before taking office and he knew their stories. The fishermen also know that MVR 25 is actually too high, he said.

“It is more important for the fishermen to get the money for the fish they catch without delay,” he said.

"The fishermen want a realistic price that they can can paid for. They want a price that the state can afford to pay for the fish they catch”.

The government's intention is to reduce the price of oil sold to fishermen.

He said they are working to fix a base rate for selling oil to fishermen as soon as possible. However, he did not give a specific date.

With a positive change in oil prices, the minister said, fishermen would feel a higher income.

He said the current price of MVR 25 per kg was a political decision taken by the previous government. Although the price should be changed, it will be done after a lengthy consultation process with the views of fishermen, fish buyers and the government, he said.

The price of fish will not fall below MVR 20 per kg. The government is now considering changing the purchase price of fish. The minister also referred to President Muizzu's promise.

Minister Shiyam said:

The previous government raised fish purchase prices to coincide with the presidential election after receiving green signals that European duties would be eased.

"What is known, however, is that from where these stories exist, and where there is any possibility that European tariffs can be reduced in one of these times, our, those who work on it [and we have not started them directly, where those work have gone, those who work on it] say and we are far away from where tariffs can be reduced," he said.

“They are saying it will still take an year and/or half”.

Former President Ibrahim Mohamed Solih said in January that the European Union (EU) and the United Kingdom, the two largest markets for domestic fish exports, had decided to cut their duties on fish and that they would soon announce the move.

Maldives and the EU have been in talks since June to find a way to cut duties on fish exported to European countries.

Negotiations on a free trade agreement between the UK and Maldives also began in June. The agreement will facilitate duty-free exports of Maldivian fish products to the UK.