NTB, May 2021: Farmer Terms of Trade Increased by 0,96 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 May 2021 was 106,76, increased by 0,96 percent compared to the previous month. The increase occurred because the indices of price received by farmers rose by 1,17 percent, which was higher than the increase of the indices of price paid by the farmers that was only 0,20 percent.

The value of farmer terms of trade by sub sector as follows: food crops about 108,16, horticulture about 105,05; smallholders estate crops about 91,01; animal husbandry about 108,21; and fishery about 109,90.

In May 2021, there was inflation in the rural area of West Nusa Tenggara about 0,16 percent. This was due to increasing value of Household Consumption Indices (IKRT) of the following expenditure groups: food, beverages, and tobacco; clothing and footwear; transportation; equipment, tools, and routine household maintenance; and personal treatment and other services.

Agricultural terms of trade in May 2021 were 107,13 percent, increased by 0,95 percent compared to the last month that was 106,12 percent. Majority of agricultural terms of trade reached the value above 100 except for smallholder’s estate crops which only amounted of 90,10. The agricultural terms of trade of other sub sectors were as follows: food crops (108,80); horticulture (104,76); animal husbandry (108,11); and fishery (112,56).