Development of Cooperatives in Nepal

INDIRA PANTA

Member , ICA Asia & Pacific, Youth Committee Kathmandu, Nepal

Tel: 00977-1-4389660, Cell- 00977-1-9851099659

E-mail: indirapanta2011@gmail.com

Country Statement

Map of Nepal

N

Mount Everest

Basic Information Land

Total Land Area: 147,181 Km2 Cultivated Area: 3,364,139 ha

Population Total Population: 26.6 million Youth Aged Between 14-16: 38.8 More then 4 hundred thousand

people enter every year in labour market

Basic Information…. GDP

GDP per capita: 562 US$ GDP in Agricultural Sector: 33 US$ Contribution of Agricultural Sector in

GDP: 34.7 %

Historical Background (Cont…)

Cooperative was introduce in 1956. First cooperative was established as

credit cooperative society in Chitwan (2 April, 1956) to provide support for flood stricken people.

Cooperative Society Act, 1959. Sajha Society Act, 1984 Existing Cooperative Act, 1992 Dramatically changes in different

types and levels after 1992.

Nepal

COOPERATIVES DATA

Total cooperative operating – 28 Thousand

Center federations -16Cooperative Bank-1Members : More than 40 lakes Women Members : 42%Youth Members ??( we will work out soon )

GOVERNMENT & Cooperatives Government has recognised Cooperatives as one of the important pillar for eco dev.

Last year Cooperative Ministry formed

National Cooperative Policy bill has been passed in 2012

Role of Cooperatives in Three Year Plan (2010-2013)

Cooperative will be developed as a strong pillar of economy which may play a supplementary role to government and private economic sectors as recognized by the Interim Constitution 2006.

Cooperatives will be advanced as lead sector for poverty reduction.

Cooperative will enhance to make the foundation of economic prosperity, social transformation and social justice based development for the collective benefits through labour, skill and research of general people.

Role of Cooperatives in Three Year Plan (2010-2013) (Cont..)

Cooperative will be prepared to play a role to increase production, promote investment, mobilize capital, develop marketing, agriculture and livestock service and other non agriculture sector.

Cooperative Development Trend in Nepal

Rapidly increasing Savings and Credit Cooperatives 11,594 in 2011/12

Increasing Savings, Credit lending, Share Capital, Membership, etc.

Cooperative Trend in Nepal Producing organically Exporting Abroad

Producing organic honey and marketing it in the internal market only

Gradually Coming up T.V., F.M. radio Service and Cable

networking business Running hospitals, health care services Rural electrification

Tea & Coffee Cooperatives:

Bee Keeping Cooperatives:

Communication/ Health and Electricity Cooperatives:

Cooperative Trend (Cont..) Collection & Distribution in Coop brand By products & Value addition Service provided : Feed. Credit, Micro -

Insurance etc.

Concentrated in unseasonable vegetables

Cooperative Farming ( Piggery, Chicken, Goat, Seeds, Livestock

Rice & Oil Mill Credit & Insurance (Mutual Aids) Socialization of the indigenous People

like Raute, Bankariya, Chepang

Dairy Cooperatives:

Agriculture, Fruits & Vegetables Cooperatives:

Cooperative Trend (Cont..) Emerging Business Fair Price Consumer shop

Mostly doing savings and credit Few doing additional activities

Consumer Cooperatives :

Multipurpose Cooperatives:

General Trend in Nepal Adoptation of modern techniques &

Tools in cooperative enterprises. Developing effective and efficient

management. Increasing attraction to have

cooperative training and education Shifting from “Traditional/Subsistence”

enterprises to market driven. Increasing Cooperative in urban area Increasing high volume of coop

business

General Cooperative Trend in Nepal (Cont……) Increasing large number of agricultural

and non agricultural cooperatives: savings and credit, dairy, consumer service, tea, coffee, vegetable and fruits, honey, sugarcane, citrus, herbal, health service, tourism, communication, fishery, academic education, transportation, etc.

Formulation of cooperative policy and Cooperative Development Strategy

Revision of cooperative laws. Harmonizing cooperative bylaws with

legislation

General Cooperative Trend in Nepal (Cont……) Formulation of separate Ministry of

Cooperatives & Poverty Alleviation Shifting responsibility for

cooperative development from government structure to autonomous cooperative

Gender Balance participation Infrastrucure development Amalgamation among the

cooperatives

Any person can become member of cooperatives as following criteria

he should be 18 years old he is voluntarily willing to join

cooperative for meeting this needs, aspirations,

he resides within the jurisdiction he is prepared to buy share he accepts responsibility as

provisioned in its byelaws

Membership

Structure of cooperative General Assembly

(Individual people at least 25)

Managing Committee ( 7-9 Members)

Accounts Committee(3 Members)

Sub-Committees(3-5 Members)

Manager

Sales and Purchases

Savings and Loans

Training and Education

General Administration

Personnel Administration

Financial Administration

For Agriculture Cooperatives Cooperatives are lacking technical

guidance Storage facilities are not available Agriculture inputs including credit

are not available in time

Issues and Challenges

For Women's Cooperatives Lack of awareness of functioning

cooperatives exist Non availability of credit for

cooperatives exist Technical guidance is almost nil

Issues and Challenges….

For Credit Cooperatives Lending and recovery are serious

issues Cooperatives lack technical

guidance

For All Cooperatives Insufficient co-operative education

and training Internal control system is very weak Monitoring system is not Functional Evaluation of monitoring reports are

not reviewed

Issues and Challenges….

YOUTH IN COOPERATIVES

The Challenges can be overcome by promoting the participation of young people in the Cooperative Movement .

Media makes me interact with different people of all ages and the energy , enthusiasm and exposure of the youth of today is incomparable .They are an asset for the nation and more so for the Cooperatives

YOUTH AND COOPERATIVES

The Cooperatives need to utilize this invaluable asset for which I would like to undertake following steps to motivate

Youth to be a part of Cooperatives and Cooperatives to be a part of their life -

TO DO1.Spread awareness about Cooperative through interaction programme with youth .

2.Telecasting Cooperative success stories

3.Organising Seminar , Conferences at District , Regional , National as well as International Level

4.Conduct Exchange programme for the Youth of different Cooperatives

To do cont….5.Contact students at school , College level and organize Cooperative Programmes like debate , discussion , quiz & games,

6.Get in touch with the youth wing of various parties and interact with them .

7.Contact the Education department for inclusion of Cooperatives as a subject in curriculum .

To do cont…..8.Arrange Cooperative training

programmes for the youth particularly the girls

9.I have already initiated most of the above mentioned .

10.Recognise the efforts of active youth already in the Cooperatives through awards, prizes and highlighting their contribution in newspapers and TV Channel

  

CONCLUSION

Last but not the least, I work with an open mind to do the best possible

I , you and we together can do for the Youth , for the Cooperatives and the Community at large .

CONCLUSION ………

Mind is like a parachute,Its works only when it is open, so I work with an Open mind, Open to suggestion by all.

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