NTB, July 2022: Farmer Trade Rate Decreased 0,86 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 July 2022 was 104,74, decreased by 0,86 percent compared to the previous month. It is due to the percentage increase of the indices of the price received by farmers being lower compared to the price paid by the farmers. The previous increased by 0,93 percent, while the latter increased only by 0,06 percent.

▪ The value of farmer terms of trade by sub sector as follows: food crops about 97,52; horticulture about 147,17; smallholders estate crops about 92,09; animal husbandry about 107,68; and fishery about 114,36.

▪ In July 2022, the Household Consumption Indices (IKRT) rose because the value of all expenditure groups went up except for Education and Information, communication and financial services.

▪ Agricultural terms of trade in July 2022 was 105,88 percent, decreased by 0,20 percent compared to the previous month.