NTB, December 2021: Farmer Trade Rate Was Recorded Increased Around 1,08 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 December 2021 was 106,88, increased by 1,08 percent compared to the previous month. It is due to the higher increase in the indices of the price received by farmers compared to the increase of the indices of the price paid by the farmers. The previous increase by 1,89 percent, while the latter increase only by 0,79 percent.

▪ The value of farmer terms of trade by sub sector as follows: food crops about 107,74; horticulture about 105,64; smallholders estate crops about 93,35; animal husbandry about 108,18; and fishery about 113,56.

▪ In December 2021, the Household Consumption Indices (IKRT) rose because the value of the following expenditure groups went up: food, beverages, and tobacco; Furnishings, household equipment; Transport; and Personal care and other services.

▪ Agricultural terms of trade in December 2021 was 106,04 percent, increased by 1,47 percent compared to the previous month.