NTB, February 2021: Farmer Trade Rate Down by 0,29 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 February 2021 was 109,01, decreased by -0,29 percent compared to the previous month. The decrease occurred because the indices of price received by farmers fell by -0,52 percent, which was higher than the decrease of the indices of price paid by the farmers that was only     -0,23 percent.

·       The value of farmer terms of trade by sub sector as follows: food crops about 111,49, horticulture about 110,63; smallholders estate crops about 92,23; animal husbandry about 106,61; and fishery about 107,83.

·       In February 2021, there was deflation in the rural area of West Nusa Tenggara about -0,34 percent. This was due to decreasing value of Household Consumption Indices (IKRT) of the following expenditure groups: food, beverages, and tobacco; and personal treatment and other services.

·       Agricultural terms of trade in February 2021 were 109,17 percent, decreased by 0,54 percent compared to the last month that was 109,76 percent. Majority of agricultural terms of trade reached the value above 100 except for smallholder’s estate crops which only amounted of 91,90. The agricultural terms of trade of other sub sectors were as follows: food crops (111,89); horticulture (110,72); animal husbandry (105,83); and fishery (109,99).