Mulching Technology in Agriculture: VAT Policy Changes Could Enhance Farmer Profitability
In Bangladesh, the adoption of mulching technology in agriculture is gaining traction as a means to address challenges such as climate change, rising production costs, and labor shortages. Mulching involves using a plastic film or organic layer over soil to retain moisture, suppress weeds, and regulate temperature, thereby reducing irrigation needs. Despite its benefits, the technology's wider adoption is hindered by a 15% VAT on mulching film, which increases costs for farmers. Experts argue for policy changes to reduce VAT, making the technology more accessible and affordable.