Economic sustainability of rural cooperatives in Nepal - a bio-economy approach case study of Tulsipur sub-metropolitan city, Dang

Abstract

Cooperatives today are facing difficulties resulting from the disruption of the cooperative system and the global economic crisis. Instead of a vibrant cooperative sector, cooperatives in Nepal are facing increasing financial difficulties that threaten their survival as businesses. Therefore, a study was conducted in the sub-metropolitan town of Tulsipur in Dang district of Nepal to explore practical economic models and types of cooperatives, to use the concept of bio-economy as a great opportunity for rural development, and to find a way to mitigate these negative impacts to restore the sustainable functioning of rural cooperatives in Nepal. Twenty-one agricultural cooperatives were studied through key informant interviews, focus group discussions and semi-structured questionnaires using an interview schedule. Various parameters such as investment, net income, size, liquid assets, interest income, interest expenses and other financial characteristics were used to examine economic sustainability in relation to market linkages and membership strategy. The study broadens the understanding of the existing crisis of cooperatives and the economic sustainability of cooperatives as well as the search for options for their existence. The study also provides an avenue to explore the economic opportunities of agricultural cooperatives in Nepal. Identification of successful bio-economic practices, potential bottlenecks, cooperatives, facilitation of policy dialogues to explore new economic dynamics and enable improved governance and prosperity of local communities are highly recommended for the economic sustainability of agricultural cooperatives. Keywords: Agriculture Co-operative, Bio-economic model, Economic analysis, economic sustainability.JEL classification: P13, J54, Q13