The Cooperative Market Development Program (CMDP), launched with much fanfare by Prime Minister KP Sharma Oli during his earlier stint as PM in 2019, was envisioned as a game-changer for Nepal’s agricultural sector. Promising to modernize farming, eliminate middlemen, and ensure fair prices for both farmers and consumers, the program aimed to revolutionize the way vegetables and fruits reached the market. Six years down the lane with nearly Rs 1 billion spent, the initiative stands as a stark example of wasted potential and unmet promises.

On April 3, 2019, PM Oli inaugurated the CMDP at the National Assembly Hall, declaring it a cornerstone of the government’s efforts to commercialize agriculture through cooperatives. The program, developed in partnership with the United Nations Development Program (UNDP) Nepal, was designed to connect farmers directly with consumers via cooperative networks. Over Rs 757.9 million was invested in infrastructure, training, and equipment, with additional contributions from cooperatives and local bodies pushing the total investment even higher.

Despite the lofty goals, the program has failed to deliver. Cooperative markets lie abandoned, collection centers remain unused, and farmers continue to rely on private traders who offer upfront payments and home collection services. Consumers, meanwhile, face high prices, while the promised supply of quality produce at reasonable rates has yet to materialize.

Under the CMDP, 56 vegetable collection centers, 11 small cooperative markets, two satellite markets, one regional cooperative market, and multiple district and municipal markets were constructed. Cold storage facilities, transportation vehicles, and agricultural equipment were also provided to cooperatives. Yet, these facilities are either underutilized or repurposed for commercial use.

For instance, the Central Cooperative Market in Chabahil, Kathmandu, inaugurated on December 5, 2020, shut down within 11 months due to heavy losses. Binod Parajuli, chairman of the Central Cooperative Union for Agriculture, Seeds, Vegetables, and Fruits, admitted, “We had no experience in market operation and invested enthusiastically. We were forced to shut down as losses mounted.”

Similarly, the Lalitpur District Cooperative Union’s market in Mahalaxmisthan, built with Rs 4 million in CMDP grants, is now rented out for commercial purposes. Former chairman Madhav Dulal acknowledged that the cooperative failed to collect produce from farmers as planned, rendering the market non-operational.

Critics argue that the program’s failure stems from the wrong selection of cooperatives. Many of the chosen cooperatives had no prior experience in agricultural production or marketing. Khem Bahadur Pathak, chairman of the Nepal Agriculture Central Cooperative Union, questioned, “How can cooperatives with no knowledge of agricultural production and marketing succeed?”

The lack of expertise among cooperatives has led to the misuse of resources. Vehicles provided for vegetable collection have been rented out, and cold storage facilities remain closed due to the absence of market operations.

Instead of focusing on agricultural markets, many cooperatives used CMDP grants to construct commercial buildings. The Nuwakot District Cooperative Union built a cooperative market in Bidur, which now houses a private hospital. The Kavrepalanchok District Cooperative Union constructed a four-story commercial building in Banepa, while the Chitwan District Cooperative Union developed a commercial complex in Bharatpur.

Program Director Suman Shekhar Manandhar emphasized that cooperatives must take responsibility for sustaining the infrastructure. “After the government builds the structures, it is the cooperatives’ responsibility to market their products and gain the trust of their members,” he said. “Instead, they focused on renting out the facilities for profit.”

The CMDP’s collapse highlights systemic issues in Nepal’s cooperative sector, including poor planning, lack of accountability, and the absence of a clear strategy to ensure sustainability. While the program aimed to empower farmers and benefit consumers, it ultimately became a case of wasted resources and missed opportunities.

As Prime Minister Oli returns to power, the fate of the CMDP serves as a cautionary tale. Without addressing the root causes of its failure, any future attempts to revive the program are likely to meet the same disappointing end. For now, the dream of a cooperative-driven agricultural revolution remains just that—a dream.