NTB, November 2020: Farmer's Exchange Rate Rose by 0.81 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 November 2020 was 109,27, increased by 0,81 percent compared to the previous month. The increase occurred because the indices of price received by farmers rose by 1,04 percent, which was higher than the increase of the indices of price paid by the farmers that was only 0,22 percent.

The value of farmer terms of trade by sub sector as follows: food crops about 111,76, horticulture about 107,89; smallholders estate crops about 93,21; animal husbandry about 108,28; and fishery about 107,23.

In November 2020, there was inflation in the rural area of Nusa Tenggara Barat about 0,25 percent. This was due to increasing value of Household Consumption Indices (IKRT) of the following expenditure groups: food, beverages and tobacco; clothing and footwear; housing, water, electricity and household fuel; health; transportation; recreation, sport and culture; food and beverages services / restaurant; and personal treatment and other services.

Agricultural terms of trade in November 2020 was 109,14 percent, increased by 0,84 percent compared to the last month that was 108,23 percent. Majority of agricultural terms of trade reached the value above 100 except for smallholder’s estate crops which only amounted of 92,27. The agricultural terms of trade of other sub sectors were as follows: food crops (112,11); horticulture (107,09); animal husbandry (107,09); and fishery (109,09).