Mulching Technology in Bangladesh: VAT Reduction Could Boost Agricultural Productivity
Bangladesh's agriculture sector is facing challenges such as climate change, rising production costs, and labor shortages. To address these issues, the adoption of modern agricultural technologies like mulching is becoming essential. Mulching involves spreading a plastic film or organic layer over the soil to retain moisture, suppress weeds, and regulate temperature, which can significantly reduce irrigation needs. This technique has gained popularity in the cultivation of high-value crops like watermelon, tomato, and chili. However, the widespread adoption of mulching technology is hindered by a 15% VAT on mulching film, which increases costs for farmers. Experts argue that reducing this VAT could lower production costs and encourage more farmers to adopt the technology.