Cooperative movement play very crucial role for economic development of the country.

1. Co-operative Movements in
Nepal
Sunil K . Mahato
1

2. Content
 Meaning and concept
 Historical background
 Types of Co-operative in Nepal
 Current scenario of Co-operative in
Nepal
 Conclusions and suggestions
2 Sunil 8/5/2012

3. Meaning and concept
 “Cooperative society is the form of organization in
which persons voluntarily associated together as
human being on the basis of equality for the
promotion of economic interest of themselves”
.(H. Calvert)
 “Cooperative is self –help as well as Mutual help.
it is a joint enterprise of those who are not stand
on their own legs and therefore ,came together
non with a view to get profit but to overcome
disability arising out of the want of adequate
financial resources”.(Dr. H.N Kumzou)
 Co-operative is a movement of helpless against
the Capitalism exploitation as it is a joint effort for
Sunil
3 not only one but for all 8/5/2012

4. History of Cooperative
Movement
 First Cooperative
Mr .Robert Owen established a “consumer
cooperative society in 1844 which was the first
registered cooperative in the global history.
Objective of 1st cooperative
• To save the poor from economic exploitation of
rich
• To eliminate middleman
• To serve members
4 8/5/2012

5. What is philosophy of
cooperative?
 To serve common people
 Mutual Cooperation
 Self help
 Protection from Capitalism
 Voluntary association
 Equality by Members
 Equal Voting rights
 Democratic values
 Capital can be converted into loan
 One vote for all shares
5 8/5/2012

6. History of Cooperatives in Nepal
 Traditional forms of Cooperatives:
 Guthi, Manka, Khala,
 Institutional Cooperative Development :
 Cooperative Movement started in Nepal /India
1954
 Rapti valley Development project by USAID 1954
 First Cooperative Society in Bharatpur 2013
 First National plan period (1956-60) developed 13
Saving and credit Cooperative Societies for the
rehabilitation of the flood Victims(Rapti)
6 8/5/2012

7. Types of Co-operative In Nepal
Objective Number Capital Savings Investm Total Total
of ent income Expendit
Cooperat ure
ive
Saving and 8888 7,278,58 42,930,6 48,885,5 3,862,72 1,806,72
credit 1 49 74 4 8
Multipurpose 3465 922,740 12,805,7 48,885,5 640,386 495,490
38 74
Dairy 1687 132,746 111,149 9,163,27 685,460 589,894
7
Agro 2964 542,257 1,252,49 121,365 925,798 472,963
6
Electricity 222 18,737 10,324 2,379,11 11,677 14,005
3
Others 758 242,961 777,182 45,264 196,399 298,413
7 Sunil 8/5/2012
Vegetable of 182 2,985 9163 773,150 14,026 10,316

8. Contd
Science and 82 68,512 77,189 78,,015 643,546 639,326
Technology
Coffee 66 766 652 748 1,559 232
Health 50 32,203 24,885 444,678 25,684 29,157
Tea 75 8,349 5,189 8100 5,741 5,367
Herbal 38 2,289 392 751, 1,120 1,221
Beekeeping 41 418 422 682 87 127
Total 19,724 9,360,530 58,045,13 61,549,46 7,023,580 4,372,739
9 9
Sunil
8 8/5/2012

9. Current scenario of Co-operative in
Nepal
 In Nepal 13 types of cooperative operate
 According to the department Cooperative
annually Cooperative operate and mobilize over
annually over 100 billion ,Which accounts for Rs
61.54 billion investment ,58 Saving and 9.36
billion share capital
 This sector also provide direct employment to
more than 50 thousands while in indirectly to
more 100,000 job opportunities in different fields
 While it may normal to have 4000,to 5000
Cooperatives in the capital
9 Sunil 8/5/2012

10.  Although there are 31 commercial and 88
development banks ,79 finance and 21
Microfinance companies which cater to about 30
percent of the population ,unfortunately they are
being over banked and 70 percent still do not
have access to finance
 Many cooperative suffer from unsound
investment in risky areas ,where there are no
returns
 Most cooperative lack professional management
and plagued by the lack adequate knowledge
,principles and practices of cooperatives
10 8/5/2012

11.  “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 returns
11 8/5/2012

12. Example if you have take 2,00,000 Loan from the cooperative
then u pay 22 % interest and u also pay the different kinds of fee
Loan intere Loan Aawh Memb Organization Valuat Othe Total Loan
development
amou st fee an ershi fee
ion r fee fee shar
nt fee p fee fee e
44,00 200 2000 2000 2000 2000 2000 5420
0 0
12 8/5/2012

13. Cooperative Act 2047
13 8/5/2012

14. Conclusions and suggestions
 Cooperative movement has been very Successful
in Many Countries like Bangladesh and Kenya
 The Government has announce to celebrate
cooperative year 2012
 Many cooperative Suffer from unsound
investment in risky areas where there are no
returns
 While presently Many retired bankers are also
involved in cooperative
 Most Cooperative lack professional management
and are plagued by the lack of adequate
knowledge ,principles and practices of
14
cooperative
Sunil 8/5/2012

15.  The Cooperative Movement has dramatically
evolved after enactment of the cooperative Act
1954
15 8/5/2012

16. Suggestions
 The government and central bank should take the
initiative and prepare guideline to follow or even
implement cooperatives under the NRB.
 The government should formulated the new
cooperative act by replacement the cooperative act
2047
 The government should formed the separate Ministry
of cooperative to smooth functioning
 In Nepal the Buffalo and vegetables or fruits
Cooperative needs rather than the Saving & Credit
Cooperative
 Government should recognized good cooperative and
reward where as the bad ones must be given a time
or framework to improve
Sunil
16 8/5/2012

17.  Encourage to form the Cooperative rural areas
rather than the valley or city based
 Provide the training and guideline from the
smooth functioning of the cooperative
 The department of cooperative change their
attitude
17 8/5/2012

18. Thank you
18 8/5/2012