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Limits to Agribusiness-led Development: A Structural Analysis of the Malaysian Palm Oil Industry 13information provision, prior consent, and people’s participation in socio-environmentalassessment ar....

Limits to Agribusiness-led Development: A Structural Analysis of the Malaysian Palm Oil Industry 13information provision, prior consent, and people’s participation in socio-environmentalassessment are also asserted17.On the other hand, oil palm development also has had serious impacts on directproducers’ conditions in the course of plantation management. In the shadow ofagribusiness growth, small farmers who are organized by government agencies tointroduce oil palm as instructed often confront income instability and accompanyingdebt burden attributed to export price fluctuation. FELDA settlers, contrary to the publicimage of middle-class farmers, often feel reluctant to join the labor process and subcontracttheir labor due to the shaky foundation of economic life18. Moreover, many of themfeel discontent to accept FELDA’s control of field labor organization and land ownershipsystem because of a feeling of alienation from self-determination. After strong resistanceagainst implementing a new land ownership system in the 1980s, some settlersdropped out of the scheme, which has lead to the current implementation of FELDA’sown plantation management19. After that, the Federal Court ordered FELDA to pay 354settlers in Kelantan 11 million ringgit for cheating them by stating the grade of their oilpalm fruit to be a lower grade in January 201020, and FELDA is now facing more legalsuits from other settlers in Johor, Negeri Sembilan and Pahang21. This fact demonstratesthat exploitation and proletarianization of settlers by means of labor command havecontinued behind FELDA’s capital accumulation, and settlers have held on to strongdesire for their greater autonomy.The status of plantation workers under private agribusinesses is more vulnerable than0123456781997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007NumberFigure 4 Number of Lawsuits Related to Palm Oil Development in SarawakSource: Prepared from M.Colchester et al., Land is Life, FPP & Sawit Watch, 2007.