August 2020: Farmer Exchange Rate (NTP) of 106.99

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 August 2020 was 106,99, increased by 0,46 percent compared to the previous month. The increase occurred because the indices of price received by farmers rose by 0,10 percent,  meanwhile the indices of price paid by the farmers fell about 0,35 percent.

The value of farmer terms of trade by sub sector as follows: food crops about 108,26, horticulture about 103,67; smallholders estate crops about 96,37; animal husbandry about 109,13; and fishery about 104,05.

In August 2020, there was deflation in the rural area of Nusa Tenggara Barat about 0,55 percent. This was due to decreasing value of Household Consumption Indices (IKRT) of the following expenditure groups: food, beverages and tobacco; and housing, water, electricity and other household fuel.

Agricultural terms of trade in August 2020 was 106,59 percent, increased by 0,08 percent compared to the last month that was 106,51 percent. Majority of agricultural terms of trade reached the value above 100 except for smallholder’s estate crops which only amounted of 95,05 percent. The agricultural terms of trade of other sub sectors were as follows: food crops (108,41); horticulture 102,50); animal husbandry (107,47); and fishery (105,40).