NTB, June 2021: Farmer Terms of Trade Increased by 0,25 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 June 2021 was 107,03, increased by 0,25 percent compared to the previous month. The increase occurred because the indices of price received by farmers fell by -0,19 percent, which was lower than the decrease of the indices of price paid by the farmers that was -0,44 percent.

The value of farmer terms of trade by sub sector as follows: food crops about 109,03, horticulture about 101,23; smallholders estate crops about 91,60; animal husbandry about 108,85; and fishery about 108,96.

In June 2021, there was deflation in the rural area of West Nusa Tenggara about -0,79 percent. This was due to increasing value of Household Consumption Indices (IKRT) of the following expenditure groups: food, beverages, and tobacco; and clothing and footwear.

Agricultural terms of trade in June 2021 were 106,75 percent, decreased by -0,35 percent compared to the previous month that was 107,13 percent. Majority of agricultural terms of trade reached the value above 100 except for smallholder’s estate crops which only amounted of 90,18. The agricultural terms of trade of other sub sectors were as follows: food crops (109,01); horticulture (100,80); animal husbandry (107,77); and fishery (111,22).