The Maldives Industrial Fisheries Company (MIFCO) has said it will begin making weekly payment disbursements to fishers by the end of 2024.
President Dr. Mohamed Muizzu had promised disbursement of payments to fishers within 48 hours.
However, the Minister of Fisheries and Ocean Resources Ahmed Shiyam said the government has not been able to deliver on this promise owing to economic constraints.
A MIFCO spokesperson said on Thursday, while speaking with local media “Sun”, that after the company’s discussions with the Ministry of Fisheries, they are currently making disbursements every two weeks.
The spokesperson also noted MIFCO’s goal is to ensure disbursements do not get delayed beyond the two-week period, and reduce the gap to once a week by the end of the current year.
“We told the ministry that we will make disbursements within maximum two week. But we are also making disbursements earlier than that, if we can. Our last disbursement was within 12 days,” the spokesperson was quoted as saying by “Sun”.
They further said that MIFCO is working towards ensuring the company makes daily disbursements.
Earlier the Fisheries Ministry Director Ahmed Shifaz said that weekly disbursements will not be difficult for MIFCO now that the fish purchase rate locally is tied to the international market rates.
Shifaz added MIFCO’s recent predicaments were due to low fishing activities across the Maldives.
The former government raised fish purchase rate from MVR 17 per kilo to MVR 25, but the succeeding government led by President Dr. Mohamed Muizzu lowered this to MVR 20 per kilo.
The current administration added that MIFCO had purchased fish above the international market prices, putting the company at a great loss and creating a backlog in outstanding payments.
Despite a fish purchase rate reduction to MVR 20 per kilo, it was still a loss for MIFCO and the government was required to pay subsidies to the company to make up for the loss.
After mounting pressures by local fishers and multiple protests later, the government decided to drop the fixed purchase rate and opt for a fluctuating rate based on the international market rates.