How is laterite soil formed and why is it of low fertility?

Laterite soil is formed in areas of heavy rainfall and high temperature, where the rain leaches away the silica and the soluble bases and leaves behind oxides of iron and aluminium. It is therefore poor in nitrogen, lime and organic matter, and is coarse and acidic.

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Explanation

With heavy manuring it can be made to grow tea, coffee, cashew and rubber.