Women-led cooperative sets example

In recent times, cooperatives have faced criticism, but women-led initiatives have proven their potential to succeed. The Women’s Small Farmers Agricultural Cooperative Organization, located in Khairahani Municipality-10, Kathar, Chitwan, stands as a testament to this success.  

While savings and credit cooperatives often face challenges, most agricultural cooperatives, like this one, operate efficiently. According to Managing Director Purnamaya Adhikari, the cooperative’s strength lies in its honesty, transparency, and the commitment of its all-women membership.  

When asked about achieving a 100 percent loan recovery rate, Adhikari said, “A woman cannot succeed without family support. Women are generally more cautious about debt. They ensure loans are utilized properly, knowing they must repay them to maintain their social standing.”

Adhikari explained that loans are issued only after thorough discussions in group meetings held at the ward level, in the presence of cooperative employees. The process includes monitoring the purpose and progress of the borrowers, ensuring funds are used effectively.  

The cooperative, which has 1,835 female members, also allowed five widowers to join after their wives' deaths. It has transformed 125 members into entrepreneurial farmers and supported 195 in animal husbandry and agriculture, while 235 have ventured into other businesses.  

The cooperative provides loans at 14 percent interest for education, real estate, and vehicles, but rural enterprise loans are offered at a concessional nine percent interest rate. Through the Asian Development Bank’s (ADB) Rural Enterprise Finance Project, members can access loans of up to Rs 5m at subsidized rates. The cooperative itself received Rs 20m for setting up a rice mill, which processes and packages locally grown rice.  

The mill has resolved long-standing issues of market access and unfair pricing for farmers. Local farmer Kamala Bhandari shared her experience: “After the mill started, we didn’t have to search for buyers or accept unfair prices. I’ve been able to send my children to school with my agricultural income, and they’re now employed.”

Cooperative President Geeta KC highlighted how rural enterprise loans have empowered members by eliminating middlemen and ensuring fair prices. She remarked, “Previously, farmers suffered from middlemen’s exploitation. The subsidized loan enabled us to run the mill and secure fair prices for our members.”

The ADB’s National Director for Nepal, Arno Koshwa, praised the initiative, saying it has commercialized farming and liberated farmers from exploitative practices. “Business requires investment, knowledge, and skills, and this cooperative has successfully combined all three,” Koshwa said during a project monitoring visit.  

The Women’s Small Farmers Agricultural Cooperative Organization is not just a strong example of women’s empowerment but also a model for agricultural cooperatives striving for sustainability and farmer welfare.