As the National Council reviews the Cooperatives and Farmer Groups Bill of Bhutan 2025, members raised concerns over the minimum membership requirements needed to form cooperatives and farmer groups. Several members questioned whether the requirement for members to come from different households is practical, particularly in rural communities facing population decline and labour shortages.
Under the bill, a cooperative must have at least 15 members, with one member from each household. Any farmer group with more than 14 members must be upgraded to a cooperative. A farmer group, meanwhile, must have at least five members, each from a different household.
Some National Council members argued that these requirements could discourage the formation of cooperatives and farmer groups, potentially affecting growth in the renewable natural resources sector. They pointed to the declining rural population as a major challenge.
A study found that 138 of Bhutan’s 205 gewogs experienced population decline.
According to the International Fund for Agricultural Development, 57 per cent of Bhutan’s population lived in rural areas in 2020, down from 64 per cent in 2011.
Dagana MP Birendra Chimoria said, “The population in rural areas is declining, with many young people leaving the country in search of employment. As a result, mostly elderly people remain in the villages. Given this situation, the requirement of a minimum of 15 members to form a cooperative may be difficult to meet. How many cooperatives can realistically be established under such conditions?”
“The primary objective of the bill is to strengthen the economy. While improving marketing opportunities is important, equal attention must be given to supporting farmers who are directly involved. However, the bill prescribes a fixed minimum number of members to form cooperatives and farmer groups. How will such requirements benefit the people, particularly in areas with smaller populations?” said Pema Tashi, Sarpang MP, NC.
“What happens if more than one person from the same household wishes to join a cooperative or farmer group? The bill should clarify whether multiple members from a single household can participate and under what conditions,” said Tshering Tshomo, Zhemgang MP, NC.
“During our consultations with cooperatives and farmer groups, members shared that this may not always be practical. In some cases, the registered member may be unable to attend meetings or carry out administrative responsibilities. Instead, they suggested that the requirement be based on the number of households represented, rather than requiring one member from each of five or more different households. This would provide greater flexibility while still ensuring adequate household representation,” said Rinzin Namgyal, Trongsa, MP, NC.
Members of the legislative committee clarified that the provision was included to ensure fairness and equal participation.
“When such groups and cooperatives are created, it is voluntary. It is not a requirement to have one member from each household. However, if five members from the same household end up being members of the same group, all the decisions and benefits will be taken by that household. Hence, to have uniformity and equal opportunity, such a requirement was made,” said Ugyen Tshering, a member of the Legislative Committee.
Another member Dago Tsheringla said, “An important point to note is that a minimum of five households is required to form a farmer group, with one member representing each household. Members have suggested changing the requirement from individual members to households. The committee will review the provision and make changes if necessary before the bill is adopted.”
The House directed the committee to review several provisions of the bill before its adoption next week.
Sonam Yuden
