(4) Laterite is a soil and rock type rich in iron and aluminium,and is commonly considered to have formed in hot and wet tropical areas. Nearly all laterites are of rusty-red coloration, because of high iron oxide content.Laterite soils have a high clay content,which mean they have higher Cation Exchange Capacity and water-holding capacity than sandy soils. However,if the structure of lateritic soils becomes degraded, a hard crust can form on the surface, which hinders water infiltration, the emergence of seedlings, and leads to increased runoff. It is possible to rehabilitate such soils,using a system called the ‘bioreclamat ion of degraded lands’. This involves using indigenous water-harvesting methods (such as planting pits and trenches), applying animal and plant residues,and planting high-value fruit trees and indigenous vegetable crops that are tolerant of drought conditions. They are good for tea, coffee and cashew cultivation.