The state-owned fish company MIFCO announced that it will reduce its purchase price of fish to align with market rates starting July 1.

This change is aimed at addressing significant financial challenges faced by the company.

In a recent statement, MIFCO outlined that the new policy will involve paying fishermen a weekly price based on the international market rate for frozen blackfish and the associated costs of purchasing and exporting fish.

This price will be publicly announced by MIFCO every week.

This decision comes in the wake of financial difficulties exacerbated by a government policy implemented during former President Ibrahim Mohamed Solih's administration, which raised the purchase price of fish by Rs 25 per kg during the last presidential election's second round.

MIFCO's financial troubles have necessitated substantial government subsidies, which are now being reduced due to the state's precarious financial situation.

To mitigate these issues, MIFCO, in collaboration with the government, has secured additional funds through loans and government assistance to ensure payments to fishermen.

This year, Rs 353 million has been disbursed to fishermen, including the upcoming July 1 payment, with an additional Rs 389 million sourced from MIFCO's revenue.

Overall, Rs 831 million has been allocated to fishing boats this year, covering credits for oil and ice.

MIFCO emphasized that continuing to purchase fish at the previous rates without considering market prices is financially unsustainable.

Therefore, from July 1, MIFCO will adjust its purchasing prices weekly based on global market trends to ensure consistent payments to fishermen.

In addition to the pricing adjustment, MIFCO will collaborate with relevant government ministries to implement measures aimed at enhancing the company's efficiency, increasing revenue, and reducing expenditure.

Further details on these measures will be shared with the media regularly.