The Maldives Industrial Fisheries Company (MIFCO) has announced that it is working to clear a three-week backlog of payments owed to fishermen by next week.
MIFCO's Deputy Manager of Public Relations, Ibrahim Saeed (Kedu), stated that there is currently a backlog of 10 million Rufiyaa for fish purchased from fishermen over the past three weeks. He added that they are working with the Ministry of Finance to settle these payments as quickly as possible.
"Even in this difficult situation, we are talking to Finance and other institutions to see if we can borrow funds. MIFCO will be able to borrow funds next week. God willing, as soon as we receive the funds, we will start making payments in the first week of September. If we get it sooner, we will release it during the upcoming week as well," Saeed said.
Saeed mentioned that a specific date for the payment cannot be given yet because MIFCO has not received the funds. However, he assured that once the funds are received, the pending payments for the three weeks will be settled in full without delay.
Saeed also noted that MIFCO is facing difficulties in generating revenue these days because it is not receiving enough fish. Currently, the fish being weighed at MIFCO's facilities is barely enough for the production needs of the canneries.
"We are struggling because we are not getting bulk items, nor frozen items. MIFCO needs 150 tonnes of fish a day. But right now, we are only getting 30-40 tonnes. So, we have to sacrifice that fish for the cannery," Saeed explained.
There are difficulties in getting fish for MIFCO because some vessels are not going fishing, and some of the vessels that do go fishing are not weighing their catch at MIFCO's facilities. To resolve this and encourage fishermen, the company opened an opportunity on the 22nd of this month for vessels weighing fish at the company to receive up to 3 tonnes of ice per vessel. Under this opportunity, a total of 68 tonnes of ice was issued to 24 fishing boats that came to collect ice. This amounts to 51,000 Rufiyaa worth of ice.
To further encourage fishermen to go out to sea, MIFCO started issuing 10 tonnes of ice on credit today. MIFCO stated that vessels weighing fish at the company can take up to 10 tonnes of ice in installments starting today. MIFCO also stated that payments for the fish weighed at its facilities will be released after deducting the cost of the ice.
With MIFCO's financial situation currently very poor, the company is making significant efforts to get back on track under the guidance of the Ministry of Fisheries and the Ministry of Finance. Accordingly, MIFCO has previously stated that with the ongoing efficiency exercise, the company will become a profitable entity that pays dividends to the state.
MIFCO's efficiency exercise includes reviewing new marketing techniques to advertise and sell the company's tuna products in the international market, finding new markets, and reviewing quality control standards. It also includes managing vessel movement operations, expanding local products, and exploring and strengthening new business opportunities.
Additionally, the efficiency exercise involves introducing a monitoring mechanism from the time the fish is weighed until the export process is completed, in order to strengthen fish collection and operations, and to reduce the rate of tuna rejection.
