A union of palm oil smallholders is challenging the allocation of a billion-dollar fund that they say fails to help them rejuvenate their low-yielding oil palms and instead unfairly subsidizes large biofuel producers. Only 1 percent of the fund went to the smallholder replanting program last year, while 89 percent went to the biodiesel subsidy. The government has promised to amend the split to 22:70 this year. But the government has also defended the subsidy, saying it needs to artificially boost the price of crude palm oil, to make biodiesel competitive with the regular diesel sold in the country — which is also subsidized by the state.