MIFCO Becomes Financially Self-Sustaining as Government Ends Million-Dollar Operational Subsidies

The Maldives Industrial Fisheries Company Limited (MIFCO) has achieved financial self-sufficiency, with the government officially ending subsidies previously used to cover its operational costs. The announcement marks a significant shift in the state's management of the fisheries sector, moving away from long-term taxpayer funding for the state-owned enterprise. Speaking on PSM News’ Raajje Miadhu programme, Minister of Fisheries, Agriculture and Ocean Resources Ahmed Shiyam explained that the government previously spent approximately USD 71.34 million annually to subsidize fish purchases at a rate of USD 0.84 per kilogram. These payments have now been phased out following a series of strategic reforms. Upon taking office, the current administration found MIFCO facing severe financial distress, which had resulted in operational losses and delayed payments to local fishermen. To address these systemic failures, the government prioritized management reforms led by the Ministry of Fisheries and the Ministry of Finance and State Enterprises, under presidential guidance. Minister Shiyam emphasized that public funds must be used more responsibly and that MIFCO could not rely on taxpayer support indefinitely. He clarified that the company now operates within a competitive market and is responsible for setting its own fish purchasing prices without state intervention. Despite the end of operational subsidies for MIFCO, the government continues to provide targeted support to the fishing community. The only remaining subsidy in the sector is for fuel, designed to protect over 17,000 families from the volatile fuel prices caused by conflicts in the Middle East. Crucially, this fuel support is extended exclusively to individual fishermen and does not apply to MIFCO’s own fuel procurement. The company now purchases fuel from Fuel Supplies Maldives (FSM) at the same market rates as any other private enterprise, completing its transition to an independent operational model.