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Subsidized co-op shops facing closure

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DHANKUTA, July 12: Most of the consumer co-operative outlets established in the district under government subsidy are on the verge of closure due to insufficient budget and weak managerial strength to compete with privately run establishments.



The government in fiscal year 2007/08 had announced to provide Rs 100,000 each to such co-operatives, providing daily consumer goods to people in about 4,000 village development committees (VDCs) and municipalities across the country. [break]



Bhim Bikram Gurung, chairman of District Co-operatives Association, said the shortage of sufficient money to invest and absence of government´s proper monitoring mechanism to assess the performance of such co-operatives are the factors behind the poor performance of consumer co-operative shops.



The government had provided a subsidy of Rs 3.6 million through the Department of Co-operatives (DoC) to open 36 co-operatives in the district. However, local people have complained that not a single government official turned up to monitor the performance of such co-operatives last year.



The government has formed a district-level team led by Local Development Officer of concerned district to monitor the cooperatives.



Chief District Officer Kali Prasad Parajuli, who is also the member-secretary of the monitoring team, claimed that the team had been trying its level best to monitor the consumer co-operatives given the limited resources available to them.



He further added that the team had recently monitored some co-operative shops being run in Chaubise and Constituency No. 2 in the district.



Co-operative shops in about a dozen VDCs, including Bodhe, Chhintang and Marekatahare, have already been closed. Worse still, a member of the team disclosed that executive committee members of some co-operatives themselves are misusing the government subsidy.



However, Jaya Ram Shrestha, director of District Co-operatives Division Office, claimed that none of the consumer co-operatives running under government subsidy has been closed.



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