Co- Operative Organization in Nepal and Its Importance

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Co- operative started in Nepal in 2010 B.S. This note provides you with the information about co- operative organization in Nepal and its importance.
Co- Operative Organization in Nepal and Its Importance

Co- Operative Organization in Nepal

Co- operative started in Nepal in 2010 B.S. The cooperative Department was established that year with a view to developing cooperatives through people participation and mobilization. While this Department was attempting to study the activities carried out in the cooperative sector in different parts of the world, the people of Nepal had to face the devastation of floods in 2011 B.S. The devastating floods that occurred all over the country- in the Terai, the inner Terai and the Hills caused huge destruction of people and property. People were compelled to leave their homes in search of safer places. The newly established Cooperative Department had played a key role to help people face the adversely with courage and patience.

Different primitive forms of cooperatives such as Dharma Bhakari, prama, and Guthi have been known to be since in operation since antiquity. Right at the beginning of planned development in Nepal 2013 B.S. Cooperative loan committees were formed by an executive order to provide the loan to farmers as a part of the multipurpose projects implemented to develop the Rapti Valley. In 2017, the cooperative development fund was set up. In 2016, the cooperative organization act and in 2018 B.S. the cooperative organization regulations were promulgated. In 2018, Sajha Publications, Sajha Travels, Sajha Health Service were formed under the Central Cooperative Sajha Organization.According to the king's Address of Baishakh 1, 2031, which envisioned the implementation of effective cooperative programs throughout the country in the form of a campaign, such programs were started in 27 districts in the Baishakh of that year. After the restoration of democracy, Sajha Organization Act 2041 was dissolved and Cooperative Act 2048 and Cooperative Regulations 2048 were passed by the parliament. These two laws are still in effect.

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Importance of Cooperatives in Nepal

Nepal is an agriculture based economy. Most of the people are farmers who live in the rural areas. The income level of the country is very low. They are not getting the basic facilities of life like education, health, finance, housing facilities, electricity, telephone, water supply and other basic goods and services. In such a context, cooperative can be the best economic means to uplift the economic standards of the people of the lower income class living in rural and urban areas.

The followings are the importance of cooperative in Nepal:

  1. They provide financial assistance to the farmers for buying improved seeds, chemical fertilizers and agricultural tools and equipment at a low-interest rate in order to increase agricultural output.
  2. They provide financial assistance to the people of rural areas for poultry farming, bookkeeping, fisheries, horticulture, animal husbandry and promoting cottage and small scale industries.
  3. They provide the facilities of warehousing, transportation, processing, grading, packing, financing, and marketing the products of their members.
  4. They develop a feeling of mutual help, co-operation, democracy, unity, brotherhood and equality which ultimately brings peace and prosperity in the society.
  5. They protect their members from the exploitation of capitalist organizations, money leaders and middlemen which ultimately helps for the betterment of the living standards of people.

Things to remember
  • Development of co- operative started in Nepal in 2010 B.S. The cooperative Department was established that year with a view to developing cooperatives through people participation and mobilization.
  • Different primitive forms of cooperatives such as Dharma Bhakari, prama and Guthi have been known to be since in operation since antiquity.
  • It includes every relationship which established among the people.
  • There can be more than one community in a society. Community smaller than society.
  • It is a network of social relationships which cannot see or touched.
  • common interests and common objectives are not necessary for society.
Videos for Co- Operative Organization in Nepal and Its Importance
International Year of Cooperatives 2012: Cooperative Enterprises Build a Better World
Introduction to Co-operatives
Questions and Answers

Nepal is an agriculture based economy. Most of the people are farmers who live in the rural areas. The income level of the country is very low. They are not getting the basic facilities of life like education, health, finance, housing facilities, electricity, telephone, water supply and other basic goods and services. In such a context, cooperative can be the best economic means to uplift the economic standards of the people of the lower income class living in rural and urban areas.

The followings are the importance of cooperative in Nepal:

  1. They provide financial assistance to the farmers for buying improved seeds, chemical fertilizers and agricultural tools and equipment at a low-interest rate in order to increase agricultural output.
  2. They provide financial assistance to the people of rural areas for poultry farming, bookkeeping, fisheries, horticulture, animal husbandry and promoting cottage and small scale industries.
  3. They provide the facilities of warehousing, transportation, processing, grading, packing, financing, and marketing the products of their members.
  4. They develop a feeling of mutual help, co-operation, democracy, unity, brotherhood and equality which ultimately brings peace and prosperity in the society.
  5. They protect their members from the exploitation of capitalist organizations, money leaders and middlemen which ultimately helps for the betterment of the living standards of people.

Any two importances of co-operatives in Nepal are as follows:

  1. They provide financial assistance to the farmers for buying improved seeds, chemical fertilizers and agricultural tools and equipment at a low-interest rate in order to increase agricultural output.
  2. They provide financial assistance to the people of rural areas for poultry farming, bookkeeping, fisheries, horticulture, animal husbandry and promoting cottage and small scale industries.
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