NTB, May 2020: Farmers Exchange Rate Increased by 0.03 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 May 2020 was 105,91, decreased by 0,03 percent compared to the previous month. The increase occurred because the indices of price received by farmers rose by 0,15 percent which was higher than the increase of the indices of price paid by the farmers that only rose about 0,12 percent.

·       The value of farmer terms of trade by sub sector as follows: food crops about 106,08, horticulture about 110,92; smallholders estate crops about 97,65; animal husbandry about 106,47; and fishery about 102.09.

·       In May 2020, there was inflation in the rural area of Nusa Tenggara Barat about 0,11 percent. This was due to increasing value of Household Consumption Indices (IKRT) of all expenditure groups especially of housing and footwear.

Agricultural terms of trade in May 2020 was 106,10 percent, increased by 0,04 percent compared to the last month that was 106,06 percent. Majority of agricultural terms of trade reached the value above 100 except for smallholder’s estate crops which only amounted of 96,85 percent. The agricultural terms of trade of other sub sectors were as follows: food crops (106,86); horticulture 109,71); animal husbandry (105,58); and fishery (103,95).