NTB, January 2020: Farmers Exchange Rate Rised by 0.45 Percent

Farmer terms of trade (FTT) is the ratio between the indices of price received by farmers (It) and the indices of the price paid by farmers.

FTT can be interpreted as an indicator to observe the purchasing power parity of farmers in the rural area. FTT also shows the terms of trade between agricultural products and consumption of goods and services as well as production cost.

FTT in January 2020 was 107,18, increased by 0,45 percent compared to the previous month. The increase occurred because the indices of price received by farmers (1,29 percent) rose higher than the indices of price paid by the farmers (0,83 percent).

In January 2020, there was inflation in the rural area in Nusa Tenggara Barat about 1,13 percent. This was due to increasing value of Household Consumption Indices (IKRT) of all expenditure groups except for transportation.

Agricultural terms of trade in January 2020 was 107,89 percent, increased by 1,02 percent compared to the last month that was 106,79 percent. Majority of agricultural terms of trade reached the value above 100 except for smallholder’s estate crops which only amounted of 96,00 percent. The agricultural terms of trade of other sub sectors were as follows: food crops (109,96); horticulture 108,41); animal husbandry (106,53); and fishery (102,76).