NTB, April 2021: Farmer Terms of Trade Recorded Down by 1,18 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 April 2021 was 105,75, decreased by -1,18 percent compared to the previous month. The decrease occurred because the indices of price received by farmers fell by -0,72 percent, on the contrary the indices of price paid by the farmers increase 0,46 percent.

The value of farmer terms of trade by sub sector as follows: food crops about 106,34, horticulture about 109,48; smallholders estate crops about 90,61; animal husbandry about 106,90; and fishery about 107,73. 

In April 2021, there was inflation in the rural area of West Nusa Tenggara about 0,67 percent. This was due to increasing value of Household Consumption Indices (IKRT) of the following expenditure groups: food, beverages, and tobacco; clothing and footwear; health; transportation; housing, water, electricity, and household fuel; and equipment, tools, and routine household maintenance. 

Agricultural terms of trade in April 2021 were 106,12 percent, decreased by -0,81 percent compared to the last month that was 106,99 percent. Majority of agricultural terms of trade reached the value above 100 except for smallholder’s estate crops which only amounted of 89,66. The agricultural terms of trade of other sub sectors were as follows: food crops (106,87); horticulture (109,27); animal husbandry (107,17); and fishery (110,39).