Minister says only one fish processing private firm operational

Fisheries Minister Ahmed Shiyam has said that the business of private Maldivian companies engaged in the fish purchase and export business has almost come to a standstill and there is only one company in operation at present.

Minister Shiyam has been summoned to Parliament on Tuesday for questioning on the state of the country’s fishing industry. Shiyam's biggest concern was that the previous government had increased the price of fish to MVR 25 per kg, causing private businesses to come to a halt.

"Of the companies involved in skipjack tuna, only Maandhoo (Horizon Fisheries) is in operation at the moment," the minister said.

"Ensis has been discontinued, because of the price change."

While Maandhoo is the only company in the skipjack tuna business that has not stopped operations, the minister said the company is also facing major challenges.

“We are informed that fish are being bought and exported from Maandhoo at a loss in order to continue the work with the buyers,” he said.

The purchase price of fish was increased to MVR 25 by the previous government in mid-September after the first round of the presidential election.

The increase in fish purchase prices came at a time when various candidates were making similar promises during the presidential election that fishermen would get a better price for their fish.

Fishermen's associations have expressed concern over the change, saying it is not feasible to buy fish at a fixed price instead of the market rate. Some private companies also expressed concern.

The government has decided to reduce the purchase price of fish to MVR 20, but no date has been given for the change to take effect.