The participation of stakeholders in the design of fisheries policy instruments has emerged worldwide as good governance practice. Their participation is expected to ensure that policies are context-specific, address local needs and ecological realities, and foster effective fishery management. We used an interdisciplinary perspective from policy science, institutional economics, and sociology to challenge this common view in least developed countries through a case study of mud crab export small-scale fisheries in Madagascar. In 2021–2023, we conducted semi-structured interviews with representatives of local communities, the fishing sector, environmental non-governmental organizations, research, and administrations to study the co-production process of policy instruments regulating fishing and market activities. The results showed that non-state stakeholders' participation was effective during the design, early development, and implementation phases of instrument production although local communities contributed less than other influencing stakeholders (non-governmental organizations, experts, and exporting companies) due to power asymmetries. However, the final content of most policy instruments was determined with limited participation while the decision-making process remained under the control of the central fisheries administration. The paper highlights the visible and hidden aspects of apparent inclusive governance of the fisheries. To develop sustainable and actionable solutions to wicked resource use problems in small-scale fisheries, efforts should extend beyond opportunistic consultation to ensure meaningful contribution of local and other non-state actors to decision-making through transparent institutions.