A new study on the impact and institutional sustainability of small farmer cooperatives says that rural institutions promise to emerge as viable entities. A statement issued last week by the Agricultural Development Bank of Nepal (ADBN) and the German Agency for Technical Cooperation (GTZ) says that farmer co-ops are doing well in terms of management capacity, decision making, member participation, resource mobilisation and communication.

The study had sampled 11 Small Farmers\' Cooperatives Ltd (SFCLs) in the hills and the terai and assessed the perception of the farmers. The study concludes that "the SFCLs are clearly emerging as viable grassroots organisations".
The study found that both economic and social living conditions of co-op members had improved, particularly by reducing their dependence on moneylenders. Of the farmers surveyed, half of them said that their children could now go to school because of improved incomes.

An SFCL delivers financial and non-financial services to members in rural areas. It is member-owned and controlled and comprises of three-tiers-small farmer groups, inter-groups and main committee. At present there are 85 such co-ops, involving 50,000 members, in 29 districts.