The Maldives Industrial Fisheries Company (MIFCO) has announced today that it is currently unable to change the price at which it purchases fish from fishermen.
MIFCO decided to change its skipjack tuna purchasing price in accordance with market rates on July 1. It has been two months since the price was changed, and the price has been maintained at the same level so far. MIFCO stated that the price could not be changed because there has been no positive change in the price of skipjack tuna in the global market since that day.
MIFCO noted that the period when the fish purchasing price was changed was also a time when fishing was very poor, and although the price of fish in the global market has gone down since then, MIFCO has worked to maintain the purchasing price without lowering it.
"When the price of fish was changed, even though MIFCO was weighing fish at the purchasing rate of 16 Rufiyaa, it is not a sustainable practice. Therefore, the company is currently working to maintain the price so that it does not fall below 16 Rufiyaa until the price of fish improves in the market, and once the price goes up, to purchase quality fish from fishermen at a good price," MIFCO said.
MIFCO stated that it has decided to take every opportunity to bring a positive change to the price of fish, taking into account the models used to monitor global market prices, and is holding consultative meetings with relevant parties regarding the matter.
MIFCO said that the company still needs government subsidies to maintain the price of fish at a certain level, and that the company is facing major difficulties in its cash flow due to the government's cash flow constraints and the decline in fishing. Furthermore, the company stated that even if MIFCO has to weigh fish at a loss at the rate of 16 Rufiyaa in the interest of fishermen in this situation, it is not something that can be done permanently without subsidies, so if the price of raw fish in the international market goes down in the future, there will be no other option but to lower the purchasing price per kilo of fish.
Following the company's decision to purchase fish from fishermen at a price determined every week based on the price of frozen skipjack tuna in the international market and the costs incurred in purchasing and exporting fish, the price has been announced every week since July 1.
The prices at which fish is purchased from MIFCO centers and boats are:
Above 1.5 kg
Normal fish (without ice), skipjack tuna and yellowfin tuna 14 Rufiyaa
Below 1.5 kg
Iced fish, skipjack tuna and yellowfin tuna 7 Rufiyaa
Normal fish (without ice), skipjack tuna and yellowfin tuna 5 Rufiyaa
MIFCO determined a specific price for purchasing fish every week because purchasing, processing, and exporting fish from fishermen is not financially sustainable, and in order to find a permanent solution to this and to arrange a system where the money owed for the fish purchased from fishermen can be paid regularly.
Since there has been no positive change in the price of fish in the global market, MIFCO's view is that the best option for MIFCO and the industry at this time is to wait until a positive change in the price of fish in the international market is seen without lowering the price of fish.
