NTB, November 2021: Farmer Terms of Trade Recorded Down by 0,43 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 November 2021 was 105,73, decreased by -0,43 percent compared to the previous month. The decrease occurred because the indices of the price received by farmers fell by -0,55 percent, while the indices of the price paid by the farmers decrease by -0,12 percent.

The value of farmer terms of trade by sub sector as follows: food crops about 107,74; horticulture about 93,49; smallholders estate crops about 93,93; animal husbandry about 108,64; and fishery about 111,95.

In November 2021, the Household Consumption Indices (IKRT) decreased due to decreasing value of the following expenditure groups: food, beverages, and tobacco; and clothing and footwear.

Agricultural terms of trade in November 2021 were 104,51 percent, decreased by -0,95 percent compared to the previous month.