Minister of Fisheries, Agriculture and Ocean Resources Ahmed Shiyam has said problems affecting ice plants previously transferred to Fenaka Corporation have still not been fully resolved.
The Minister made the remarks during a Parliament sitting while outlining Government projects and developments in the Maldives’ fisheries sector.
Minister Shiyam said one of the biggest problems facing the fisheries industry when President Dr Mohamed Muizzu assumed office was the transfer of ice plants previously operated by Maldives Industrial Fisheries Company (MIFCO) to Fenaka Corporation under the previous Administration.
He said the individuals assigned by Fenaka to manage the facilities lacked the necessary expertise to carry out such operations, resulting in major problems at the ice plants.
The Minister said the issues affecting the ice plants transferred to Fenaka have still not been fully resolved. He said bringing the facilities into full operation would require expenditure amounting to millions, while a decision has also been made to establish new ice plants to replace some of the existing facilities.
“The Maldives’ fisheries industry had been left with major challenges that had accumulated over a long period. No Government wanted to address the real problem because finding a genuine solution would require the State to incur significant expenditure,” Minister Shiyam said.
He said previous administrations had regarded subsidies as the only solution to the challenges facing the sector, while the current Administration is working to find genuine solutions to those challenges.
Minister Shiyam said increasing fish storage capacity to 25,000 tonnes would allow fish caught during seasonal fishing periods to be preserved and sold in overseas markets at appropriate prices.
He also said the Government is working to increase ice production capacity, with work on 11 ice plants expected to begin soon.
The Minister said the current Administration is also undertaking more extensive work than previous Administrations to introduce systems on fishing vessels that allow fish to be chilled using seawater.
He said the Government’s objective is to introduce new initiatives in the fisheries and agriculture sectors and create opportunities to generate income that were previously unavailable.
UK tariff removal creates competitive fish-buying market
Minister Shiyam also said the removal of tariffs imposed by the United Kingdom on fish imported from the Maldives has created a competitive fish-buying market in the country.
Speaking during the same Parliament sitting, the Minister said removing the tariff had provided Maldivian exporters with a 20 per cent benefit, creating opportunities for companies to purchase fish at favourable prices.
He said companies including Horizon, Ensis and MIFCO are purchasing fish at good prices.
The Minister said most fish exported to the United Kingdom is purchased by private companies, which are also offering good prices to fishers.
He said MIFCO currently does not purchase fish for less than approximately USD 1.30 per kilogramme and sometimes pays approximately USD 1.43 per kilogramme. Private companies are currently purchasing fish at prices ranging from approximately USD 1.36 to USD 1.43 per kilogramme.
“We believe genuine competition has now been created,” Minister Shiyam said.
The Minister also highlighted challenges in securing better prices for fish, noting that the volume of processed fish remains low.
He said this is due to fish-canning capacity being limited to a certain level, as well as limitations in fish storage capacity.
The United Kingdom is the Maldives’ second-largest fish export market, while the Maldives ranks as the ninth-largest exporter of fish to the United Kingdom.
The 20 per cent tariff previously imposed on Maldivian fish exports to the United Kingdom has been suspended until the end of 2028. The Maldives exports approximately GBP 16.7 million to GBP 18 million worth of marine fish to the United Kingdom annually.
The Government has said the Maldives will continue consultations with the United Kingdom Government to make the tariff removal permanent.