“Wat Chan Cooperative” the first cooperative established in Thailand.

The First Cooperative in Thailand

The “Father of Thai Cooperatives” is Prince Phitthayalongkorn.

          After assessing the area and the economic conditions of the residents, the government sought funding from Siam Commercial Bank for loans, and they recognized the necessity of legally formalizing the cooperative but believed it was premature to establish a specific law for new cooperatives due to uncertain outcomes. Instead, they opted to amend the existing Cooperative Associations Act to provide protection and facilitate the registration of new cooperatives.
Consequently, the Supplementary Cooperative Act of 1916 was enacted. The first cooperative registered under this act was the “Wat Chan Cooperative Limited,” registration number 1/1, established on 26th February 1916, in Wat Chan Sub-district, Mueang District, Phitsanulok Province. It began with 16 members, whose names are as follows:

    1. Kamnan Chum Chaisuksai
    2. Krip Deerasak
    3. Chit Nadiaphi
    4. Boon Kesenoi
    5. Boon Deerasak
    6. Khom Panphu
    7. San Sanum
    8. Lang Meephayung
    9. Krang Thappueng
    10. Yod Sanum
    11. Wing Meephayung
    12. Pae Meephayung
    13. Boon Kesenoi
    14. Lee Yena
    15. Phraam (surname unknown)
    16. Taem Chantong

Among these 16 members, 10 were elected to sign the registrar’s documents and served as the first board of directors for the Wat Chan Cooperative Limited, as follows:

    1. Kamnan Chum Chaisuksai
    2. Chit Nadiaphi
    3. Krip Deerasak
    4. Boon Kesenoi
    5. Em Panphu
    6. San Sanum
    7. Phraam (surname unknown)
    8. Taem Chantong
    9. Boon (surname unknown)
    10. Boon Deerasak

Initial Registered Capital: 3,080 Baht

  1. Loan from Siam Commercial Bank: 3,000 Baht
  2. Membership Fees: 80 Baht

The loan obtained from Siam Commercial Bank was 3,000 baht, with an interest rate of 6% per year. The cooperative lent this amount to its members at an interest rate of 12% per year. Members were required to repay 1,300 baht of the principal by the end of 1917. However, by the end of that year, members actually repaid 1,500 baht, including all interest owed. In 1916, members harvested 83.5 wa of rice, which increased to 125 wa in 1917. Although this increase was not substantial, it indicated the potential for greater production in the future. In the first year, most of the borrowed money was used to pay off old debts, leaving only a small amount for business purposes. Once members eliminate their outstanding debts, having savings to buy livestock or additional land will boost their motivation to pursue their livelihoods.

The result establishment of the “Wat Chan Cooperative Limited” not only benefited its members by reducing their debt but also increased their rice production. Additionally, one of the most significant but harder-to-measure benefits is the enhanced understanding of teamwork among members. They collaborated on ideas, took care of shared resources, and worked together to improve their livelihoods, which aligns with the government’s objectives.

It has been observed that the success of the Wat Chan Cooperative has led to the establishment of additional cooperatives seeking funding in various sub-districts of Mueang District, Phitsanulok Province with a total of 49 cooperatives.

Following the success of the Wat Chan Cooperative, 49 additional cooperatives were established in various sub-districts of Mueang District, Phitsanulok Province:

  • Cooperatives established between 1916-1926: 18 cooperatives
  • Cooperatives established between 1927-1936: 13 cooperatives
  • Cooperatives established between 1937-1946: 7 cooperatives

Cooperatives established between 1947-1956: 11 cooperatives

The First Cooperative in Thailand

In the Year 1926
During the reign of King Prajadhipok, he showed great interest in cooperatives. On 7th January 1926, he attended the general meeting of the “Ban Don Cooperative Limited” in Phitsanulok at Wat Bang Phaya. Phaya Pipit Sombat (Tab Phuwanont), the permanent secretary of the Ministry of Commerce and Transportation and the cooperative registrar, presented the cooperative’s regulations, accounts, and documents for the King to review. He listened to the meeting with keen interest until it concluded and was very pleased. The King also gave a royal speech to the cooperative members during this visit. At the same time, he recorded a royal letter in the inspection log of the Ban Don Cooperative Limited.

The Meeting Hall of the Board and Members of Wat Chan Cooperative (Before Merging)
(Currently located at Wat Chan East)

King Prajadhipok (King Rama VII), along with Her Majesty the Queen, observed the meeting of the Ban Don Cooperative members in Phitsanulok Province on 7th January 1926.