Application of Universal Cooperative Principles in Agricultural Cooperatives: A Case Study from Nepal

Abstract

This study examines the use of universal cooperative principles by agricultural cooperatives in Nepal, highlighting their importance and the challenges they face. Data from 45 cooperatives, including savings and credit cooperatives (n=17) and multipurpose cooperatives (n=28), and 135 respondents in Tulsipur Sub-Metropolitan City, Nepal were analyzed quantitatively and qualitatively. The study suggests that principles such as democratic member control, voluntary and open membership, and member economic participation are critical to the effective and sustainable operation of agricultural cooperatives in Nepal. These principles promote members' sense of responsibility and ownership by ensuring transparency, fairness, and democratic decision-making. However, the research also identifies several constraints facing Nepal's agricultural cooperatives, including limited access to finance, inadequate infrastructure, governance issues, lack of technical expertise, and political interference. These challenges could hinder cooperatives' ability to expand into new markets, provide essential services to members, and support the long-term growth of Nepal's agricultural sector. The study concludes that addressing these issues and promoting the adoption of universal cooperative principles are essential to strengthening agricultural cooperatives in Nepal and enabling them to significantly improve the livelihoods of farmers and rural communities.