Co-operatives have been successfully implemented in many countries worldwide. Although some co-operative initiatives existed in Bangladesh before independence, they could not be sustained later. Due to complex laws and regulations, small-scale farmers and marginalized communities struggle to benefit from the co-operative system. Additionally, many organizations engage in irregularities. While co-operatives are meant to support the development of underprivileged communities, the current structure does not allow them to function effectively. Excessive government control and strict legal requirements have hindered the growth of co-operatives. If these barriers were removed, co-operatives could play a much larger role.

Speakers shared these views during a policy dialogue on reforming the co-operative societies act, and opportunities for small farmers and marginalized communities. The event was jointly organized on Thursday (February 20) by the Association for Land Reform and Development (ALRD) and Bonik Barta. The discussion was moderated by Bonik Barta’s Chief Reporter, Md Badrul Alam. The Registrar and Director General of the Department of Co-operatives, Md Shariful Islam; and Additional Registrar (Audit and Law) Nabirul Islam, attended as distinguished guests. Dewan Hanif Mahmud, Editor and Publisher of Bonik Barta, delivered the welcome speech. ALRD’s Chairperson and human rights activist, Khushi Kabir, gave the opening remarks. The keynote presentation was delivered by ALRD’s Executive Director, Shamsul Huda.

The panel discussion, held at Bonik Barta’s conference room, featured Dr. Rizwanul Islam, Professor of law at North South University; Abanti Nurul, lawyer at the Bangladesh Supreme Court; Afzal Hossain, Executive Director of Rulfao in Rajshahi; and ANM Fazlul Hadi, Executive Director of Beneficiary’s Friendship Forum in Faridpur. Field-level insights were shared by Sharifa Akter Nipa, President of the Choruikul Janosomobay Dal in Pabna; Rahela Akter from Ujjibok in Mymensingh; and Chameli Khatun, President of the Lalpur Janosamobay Nari Dal in Rajshahi.

The open discussion session included contributions from Dipu Shamsul Islam, Mission Head of SPEED Trust in Barisal; Nure Alom Siddique Monju, Executive Director of the Landless Development Organization (LDO) in Pabna; Md Sayeduzzaman Khokon, Executive Director of the Grameen Unnayan Sangstha (GRAUS) in Mymensingh; Ajay A Mree, Executive Director of the Bima Cultural Development Forum in Madhupur; and Rafiqul Islam, Program Officer (Advocacy) at ALRD.

Md Shariful Islam, Registrar and Director General of the Department of Co-operatives, stated, “Co-operatives are the simplest way to build capital and can positively impact investment. However, some organizations are engaging in irregularities. Instead of following the European and American models, we should learn from successful local co-operatives. Bangladesh has immense potential, and proper management can unlock these opportunities.”

Nabirul Islam, Additional Registrar (Audit and Law) of the Department of Co-operatives, commented, “There is no easier process in Bangladesh than registering a co-operative. Last year alone, nearly 6,700 co-operatives were registered. However, we cannot issue registrations in violation of the law. When the government invests state funds, some level of oversight is inevitable. Many co-operatives have survived precisely because of government representation. Co-operatives are for everyone. We are exploring ways to ensure land access for small farmers.”

Presenting the keynote paper, ALRD’s Executive Director, Shamsul Huda, stated, “Excessive government control and interference are hindering the growth of co-operatives among marginalized communities. The registration process is overly complex and is controlled by bureaucrats without independent oversight. One of the key reasons co-operatives fail to achieve their intended goals is the existing Co-operative Societies Act of 2013, which has been designed to reinforce bureaucratic dominance.”

In her opening remarks, ALRD Chairperson and human rights activist Khushi Kabir said, “The laws and regulations governing co-operatives are so complicated that small farmers and marginalized communities—who are skilled in production—fall behind due to administrative paperwork. Often, they get trapped within institutional structures just to keep their co-operatives afloat. This undermines the fundamental purpose of co-operatives, preventing farmers from receiving the benefits they deserve.”

In his welcome speech, Bonik Barta’s Editor and Publisher, Dewan Hanif Mahmud, remarked, “Looking at the global economy, we see that many major initiatives have been built on co-operative models. Unfortunately, while some co-operative initiatives existed in our country before independence, they could not be sustained afterward. Due to a lack of proper state support, these initiatives gradually faded. After August 5, there was hope for new initiatives, but so far, no effective steps have been taken.”

Dr. Rizwanul Islam, professor of law at North South University, noted, “We have tried to keep the co-operative movement under legal frameworks and strict regulations. However, looking at our National Assembly’s discussions, we see that co-operatives hold immense potential in government policy.”

Supreme Court lawyer Abanti Nurul pointed out, “There are loopholes in the co-operative registration law. In both cases of appeal and review, the main issue revolves around the rejection of registration applications. At one level, there is no appeal after a review, and at another level, there is no review after an appeal. If the registrar rejects an application, how logical is it to request a review from the same office? This creates ample room for bias in subsequent decisions.”

Afzal Hossain, Executive Director of RULFAO in Rajshahi, stated, “Many reforms have been implemented, but there has been no initiative for land reform. If land reform were carried out, marginal communities could receive land. If they could produce collectively through co-operatives, production costs would be significantly lower, and we would have access to chemical-free food.”

ANM Fazlul Hadi, Executive Director of the Beneficiary’s Friendship Forum in Faridpur, commented, “More than file reforms, we need monitoring, mindset, and practice reforms. Simply changing the law will not achieve much. Instead, both those enforcing the law and those subject to it must have the mindset to adhere to it properly.”

Sharing her grassroots experience, Sharifa Akhter Nipa, President of the Choruikul Janosomobay Dal in Pabna, said, “Registration is essential for accessing agricultural loans and equipment. However, without registration, we lack the strength to approach the government effectively. If the legal barriers were removed, we could contribute more to the country.”

Rahela Akhter of Ujjibok in Mymensingh added, “We want policies that support the development of marginalized communities. If such policies are in place, we can secure our rights ourselves. Despite working at the grassroots level, we are often deprived of various rights. When it comes to co-operative work, recognition and rewards often go to the powerful. We want co-operative laws to be reformed.”

Chameli Khatun, President of the Lalpur Janosamobay Nari Dal in Rajshahi, noted, “Although we are engaged in agriculture, we do not qualify for loans from agricultural banks. Our groups include many indigenous members, but due to a lack of farming equipment, we cannot maximize our yields.”

Dipu Shamsul Islam, Mission Head of SPEED Trust in Barisal, participated in the open discussion, saying, “It is important to conduct a survey on how many co-operatives are active or inactive. Simply evaluating them through inspections is not enough. The state of co-operatives in Bangladesh is extremely fragile.”

Nure Alom Siddique Monju, Executive Director of the Landless Development Organization (LDO) in Pabna, stated, “It is crucial to examine who truly benefits from fisheries co-operatives. The actual fishermen receive no benefits, while the privileges go to those with political backing, influential figures, or the wealthy.”

Md Sayeduzzaman Khokon, Executive Director of the Grameen Unnayan Sangstha (GRAUS) in Mymensingh, remarked, “Government officials often speak positively when inspecting co-operatives. However, in many cases, they discourage people from pursuing registration.”

Ajay A Mree, Executive Director of the Bima Cultural Development Forum in Madhupur, pointed out, “When a co-operative faces embezzlement, only the individual responsible is expelled, but no measures are taken to recover the funds. This issue needs urgent attention.”

Rafiqul Islam, Program Officer (advocacy) at ALRD, concluded, “Laws should align with reality. The 2004 policy categorized co-operatives into 20 different types. However, many people perceive co-operatives solely as lending institutions. It is important to assess whether such activities are legally sanctioned.”