Fisheries minister confident of fortnightly payments to fishermen
According to MIFCO CFO, if fish is bought at MVR 20, the government has to pay MVR 560 million annually as subsidy to MIFCO.
By
Ahmed Mizyal
Fisheries Minister Ahmed Shiyam on Monday said that fishermen will be paid within two weeks after Maldives Industrial Fisheries Company (MIFCO) starts buying fish based on the price of fish in the global market.
Previously, fish was bought by MIFCO at MVR 20 per kg. However, MIFCO on Sunday decided to fix the purchase price of fish for each week from Monday onwards based on the price of fish in the foreign market, and the cost of purchasing and exporting the fish.
At a press conference on Monday, Minister Shiyam said the main reason for the change is to find a sustainable way to buy fish from fishermen.
Although it was a governmental promise to pay fishermen within 48 hours, he said the promise will not be fulfilled with this change.
"With the financial situation, we will not be able to pay within 48 hours. First of all, MIFCO will have to have cash flow. MIFCO will be able to maintain cash flow if the company is able to break even at least," he said.
"We don't expect to be able to pay within 48 hours right away when we start. However, our goal is to pay within two weeks, with this change”.
MIFCO buys fish from fishermen with government subsidies. It is difficult to buy fish at high prices due to the current financial situation of the state, he said.
MIFCO Chief Financial Officer Ilyas Haneef, who attended the meeting, said the reduction in the purchase price of fish would significantly reduce the expenditure on MIFCO.
"Earlier, we were buying at MVR 16 and MVR 17. We need about MVR 250 million a year in subsidies. So we will need about the same amount now," he said.
"But lately fish were being bought at MVR 25 and MVR 20. So this year, the government will have to spend a very large amount of subsidy on MIFCO”.
According to him, if fish is bought at MVR 20, the government has to pay MVR 560 million annually as subsidy to MIFCO.
"MVR 560 million is a difficult amount with the revenue and the expenditure that the state has to incur, including loan repayments and additional expenditure... So that is one purpose of this change. The other purpose is to do this in a sustainable manner," he said.
MIFCO has decided to fix the purchase price of fish every week, according to market forces and prices. Till Friday, MIFCO has fixed the purchase price of fish at MVR 16.
