NTB, June 2022: Farmer Trade Index Rose by 1,13 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 2022 was 105,65, increased by 1,13 percent compared to the previous month. It is due to the percentage increase of the indices of the price received by farmers being higher compared to the price paid by the farmers. The previous increased by 1,96 percent, while the latter increased only by 0,81 percent.

▪ The value of farmer terms of trade by sub sector as follows: food crops about 101,21; horticulture about 135,54; smallholders estate crops about 92,29; animal husbandry about 106,91; and fishery about 113,97.

▪ In June 2022, the Household Consumption Indices (IKRT) rose because the value of all expenditure groups went up except for Education and Food and beverage serving services/ restaurant.

▪ Agricultural terms of trade in June 2022 was 106,10 percent, increased by 1,75 percent compared to the previous month.