Print Edition - 2014-05-25 | MONEY
high-level commission report
- Govt initiatives sought to promote successful co-ops
May 24, 2014-
Although many cooperatives are facing troubles due to fund misappropriation by promoters, there are also a few exemplary cooperatives which are benefiting the general people.
A high-level commission formed to investigate troubled cooperatives has identified some cooperatives that are doing exceptionally well in providing access to finance and encouraging the habit of saving among members.
Among some successful cooperatives named by the commission in its report submitted to the government are Nagdada Dairy Producers Cooperative from Kaski, Aadarsha Multipurpose Dairy Producers Cooperative from Shaptari, and Sana Kishan Krishi Cooperative and Satashi Consumer Cooprative from Jhapa.
“There are hundreds of cooperatives posting a positive growth through different creative ways, but the government has not taken any initiatives to promote such kind of institutions,” states the report.
According to the report, Nagdada Dairy Producers Cooperative is engaged in the trading of agro products, livestock insurance and animal feed programme. With 410 members, the cooperative has a share capital of just Rs 461,000.
It has been making profits ever since its inception in 1995. It maintains 25 percent of the capital under secured capital fund along with other required funds. It refunds 25 percent to members farmers based on the quality and quantity of the milk sold.
Aadarsha Multipurpose Dairy Producers Cooperative has maintained Rs 7.4 million in reserve fund, Rs 5.9 million in secured capital fund and Rs 1.7 million in its cooperative education fund.
It has deposits worth Rs 30 million and it has allocated Rs 3.7 million for stock dividend fund. With Rs 143,000 capital, the cooperative aims at distributing dividend worth Rs 9.5 million.
Sana Kishan Krishi Cooperative in Prithvi Nagar, Jhapa, also has also maintained a good track record. With a share capital of Rs 19.03 million, it has 300 tea producers and 1,378 farmers as its members, of which 964 are female.
The cooperative has established a tea factory with an investment of Rs 70 million, ending a protected tussle between farmers and producers.
The cooperative has also been maintaining transparency in transactions with
proper check and balance system, according to the report. Timely annual general meeting, distribution of dividend and reporting to the division cooperative office and justified interest rate on both deposits and credits are other features of this cooperative. It offers 5-11 percent on deposits and charges 9-15 percent on credit.
Also from Jhapa, Satashi Consumer Cooperative has been operating a
department store and has its own building. It properly utilised Rs 100,000 provided by the government to run cheap shops for consumers a few years ago.
Published: 25-05-2014 09:46