NTB, March 2021: Farmer Terms of Trade Down by 1,84 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 March 2021 was 107,01, decreased by -1,84 percent compared to the previous month. The decrease occurred because the indices of price received by farmers fell by -1,41 percent, on the contrary the indices of price paid by the farmers increase 0,43 percent.

The value of farmer terms of trade by sub sector as follows: food crops about 108,10, horticulture about 114,79; smallholders estate crops about 90,12; animal husbandry about 105,65; and fishery about 106,33.

In March 2021, there was inflation in the rural area of West Nusa Tenggara about 0,41 percent. This was due to increasing value of Household Consumption Indices (IKRT) of the following expenditure groups: food, beverages, and tobacco; housing, water, electricity, and household fuel; clothing and footwear; transportation; equipment, tools, and routine household maintenance; health; and personal treatment and other services.

Agricultural terms of trade in March 2021 were 106,99 percent, decreased by -2,00 percent compared to the previous month that was 109,17 percent. Majority of agricultural terms of trade reached the value above 100 except for smallholder’s estate crops which only amounted of 89,21. The agricultural terms of trade of other sub sectors were as follows: food crops (108,15); horticulture (114,30); animal husbandry (105,53); and fishery (108,67).