NTB, Juny 2020: Farmer Exchange Decreased by 0.19 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 June 2020 was 105,70, decreased by 0,19 percent compared to the previous month. The decrease occurred because the indices of price received by farmers fell by 0,15 percent,  which was lower than the decrease of the indices of price paid by the farmers that only fell about 0,19 percent.

The value of farmer terms of trade by sub sector as follows: food crops about 105,83, horticulture about 106,85; smallholders estate crops about 97,55; animal husbandry about 108,00; and fishery about 103,60.

In June 2020, there was deflation in the rural area of Nusa Tenggara Barat about 0,29 percent. This was due to decreasing value of Household Consumption Indices (IKRT) of the following expenditure groups: food, beverages and tobacco; clothing and footwear; housing, water, electricity, gas, and other fuel.