Co-Operatives in Nepal

PRESENTED BY: RUPESH NYAUPANE

Meaning and Concept

“Cooperative society is the form of organization in which person voluntarily

associated together as human being on the basis of equality for the promotion of

economic interest of themselves.”(H. Calvert)

Co-Operative is a movement of helpless against the capitalism exploitation as it

is a joint effort for not only one but for all

History of Co-Operatives in NepalEstablishment of Department of Cooperatives (DOC) under the Ministry of Agriculture for Planning and Development in 1953

 Cooperative Movement started in 1954

Rapti valley Development project by USAID 1954

First National plan period (1956-60) developed 13 Saving and credit Cooperative Societies for the rehabilitation of the flood Victims(Rapti)

The government of Nepal announced "Member from each household" policy through its annual plans and programs in 2015

Activities of Cooperative up to 2011/12

Activities of Cooperative up to 2013/14Functions Number of

Co-operative

Male Number

Female Number

Share Capital (000)

Fund(000)

Saving (000)

Investment(000)

Saving and Loan

11851 929498 1029424 19464192 803719 109943332 94775686

Multipurpose

4136 1316382 544565 5266512 472595 25722997 32831319

Agriculture 5373 211790 200,793 622969 698480 2151540 4097486

Milk 1749 74505 28303 167115 97057 345353 425594

Electricity 406 48636 12005 64003 5062 26646 33629

Fruits and Vegetables

196 13279 17717 41917 13405 295048 559062

Tea 97 3908 1347 76760 3600 8788 16318

Coffee 80 2313 1704 14231 654 5240 5017

Herbs 144 3189 1530 19764 971 2020 8469

Bee Keeping 65 2214 1546 6782 3649 2835 3621

Science & Technology

102 8579 3980 90215 5595 29499 33632

Health 85 4652 4256 223128 5552 132161 120745

Sugarcane 48 979 287 409 2 411 571

Junar 31 700 304 706 14 720 323

Others 722 57653 46483 834957 69181 775306 1073709

Total 26501 2709902 1934551 27095151 2187959 139543971 134383307

Source: STATISTICAL INFORMATION ON NEPALESE AGRICULTURE

Historical Presentation

Number Share Capital Saving Investment -

20,000,000

40,000,000

60,000,000

80,000,000

100,000,000

120,000,000

140,000,000

160,000,000

19,724 9,360,530

58,045,139 61,549,469

26,501

27,095,151

139,543,971 134,383,307

Comparative table

Series1 Series2

Title

Dat

a

Current scenario

This sector also provide direct employment to more than 50 thousands while in indirectly to more 100,000 job opportunities in different fields  Many cooperative suffer from unsound investment in risky areas ,where there are no returnsMost cooperative lack professional management and plagued by the lack adequate knowledge, principles and practices of cooperatives

people are more attracted to cooperative because the returns are higher and they provide high level services by going to the clients house The interest rates are high so if u take loan and investment in other project then you will have difficult to gets returnsIt charges interest as well as different types of fee on loan( loan fee, membership fee, aawhan fee, organization development fee, valuation fee, other fee)

How can cooperative activities be financed

Directly from members themselves one-time or annual membership fees

· member contributions with no individual ownership attached, such as service fees.· member share capital· individual member deposits with the cooperative which may be used for business· deferred payment to members for part or all of their produce delivered to the cooperative

 From retained surpluses generated by the cooperative business

From outsiders grant

short-term loanlong-term loantrade credit offered by a supplier.

 .

Problems in Co-operatives The development of cooperatives is not satisfactory in Nepal Reasons:Lack of clarity about mission, national vision and adequate monitoring on the part of government with respect to cooperative movementLack of managerial skills and professionalism, sound planning and implementationLack of working capital, appropriate research, extension and education about cooperative movementLack of creditability.

Conclusions and suggestionsA cooperative organization can carry out its functions only after its registration under the cooperative act 2048 The Government has announce to celebrate cooperative year 2012 Many cooperative Suffer from unsound investment in risky areas where there are no returns Most Cooperative lack professional management and are plagued by the lack of adequate knowledge ,principles and practices of cooperative

Appropriate governmental policies and programs, rules and regulations, credit availability, insurance policies, and governmental support systems should be in place for a successful cooperative movement.Government should recognized good cooperative and reward where as the bad ones must be given a time or framework to improveEncourage to form the Cooperative rural areas rather than the valley or city based Necessary to provide the training and guideline from the smooth functioning of the cooperative

Thank you