Minister of Fisheries, Agriculture and Ocean Resources Ahmed Shiyam has said the Government has completely ended subsidies previously provided to the Maldives Industrial Fisheries Company (MIFCO) for purchasing fish, describing it as a result of reforms aimed at strengthening the fisheries sector.

Responding to questions in Parliament on Tuesday, Minister Shiyam said previous governments had focused on subsidising fish purchases rather than investing in long-term infrastructure to expand the industry. He noted that after the previous administration increased the purchase price of fish to MVR 25 per kilogram, the State was required to provide MIFCO with subsidies amounting to MVR 13 per kilogram, costing around MVR 1 billion.

The minister said the Government had instead prioritised expanding fish processing capacity, with projects currently underway expected to triple the country's existing processing capacity of 105 tonnes. He added that a 100-metric-tonne fish processing facility in Hulhumalé had also been contracted to a private company and is expected to be completed within 18 months.

Minister Shiyam said increasing fish exports required a shift in Government policy, noting that the Felivaru fish processing facility had operated for four decades without significant capacity expansion. He added that the Government's current approach was producing positive results and would support the long-term development of the fisheries sector.