NTB, January 2021: Farmer Terms of Trade Increased by 0,11 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 January 2021 was 109,34, increased by 0,11 percent compared to the previous month. The increase occurred because the indices of price received by farmers rose by 0,66 percent, which was higher than the increase of the indices of price paid by the farmers that was only 0,55 percent.

·       The value of farmer terms of trade by sub sector as follows: food crops about 111,54, horticulture about 113,37; smallholders estate crops about 91,56; animal husbandry about 106,89; and fishery about 107,99.

·       In January 2021, there was inflation in the rural area of West Nusa Tenggara about 0,63 percent. This was due to increasing value of Household Consumption Indices (IKRT) of the following expenditure groups: food, beverages, and tobacco; equipment, tools, and routine household maintenance; transportation; health; clothing and footwear; housing, water, electricity, and household fuel; and food and beverages services / restaurant.

·       Agricultural terms of trade in January 2021 were 109,76 percent, increased by 0,20 percent compared to the last month that was 109,54 percent. Majority of agricultural terms of trade reached the value above 100 except for smallholder’s estate crops which only amounted of 91,44. The agricultural terms of trade of other sub sectors were as follows: food crops (112,34); horticulture (113,37); animal husbandry (106,23); and fishery (110,32).