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Indonesian smallholders hit hard by palm oil prices at 5-year low

Cash-strapped farmers forced to cut back on fertilisers, pesticides and replanting, which will reduce output in coming years

Palm oil is Indonesia's second largest non-oil export, but prices have tumbled on record supplies of competing soya bean crops.


A PROLONGED fall in the price of palm oil is hitting Indonesia's legions of smallholder farmers, forcing cutbacks that will reduce output in coming years and raising the prospect of a bout of sell-outs to major producers.

Smallholder farmers account for about 40 per cent of