NTB, March 2020: Farmers Terms of Trade Was Decreased by 0,41 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 March 2020 was 107,52, decreased by 0,73 percent compared to the previous month. The decrease occurred because the indices of price received by farmers (-0,58 percent) fell lower than the indices of price paid by the farmers (-0,17 percent).

The value of farmer terms of trade by sub sector as follows: food crops about 109,16, horticulture about 108,92; smallholders estate crops about 97,49; animal husbandry about 106,81; and fishery about 100,08.

In March 2020, there was deflation in the rural area in Nusa Tenggara Barat about 0,29 percent. This was due to decreasing value of Household Consumption Indices (IKRT) of food, beverages and tobacco as well as of housing, water, electricity and other household fuel.

Agricultural terms of trade in March 2020 was 107,84 percent, decreased by 0,63 percent compared to the last month that was 108,53 percent. Majority of agricultural terms of trade reached the value above 100 except for smallholder’s estate crops which only amounted of 96,87 percent. The agricultural terms of trade of other sub sectors were as follows: food crops (110,03); horticulture 108,44); animal husbandry (105,91); and fishery (102,04).