NTB, August 2022: Farmer Trade Rate Was Rised by 0,28 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 August 2022 was 105,03, increased by 0,28 percent compared to the previous month. It is due to the percentage reduction of the price received by farmers being lower than the price paid by the farmers. The previous decreased by 0,40 percent, while the latter decreased only by 0,67 percent.

▪ The value of farmer terms of trade by sub sector as follows: food crops about 99,39; horticulture about 133,83; smallholders estate crops about 92,96; animal husbandry about 107,93; and fishery about 116,09.

▪ In August 2022, the Household Consumption Indices (IKRT) fell because the value of the Food, beverages and tobacco expenditure group went down by 1,79 percent.

▪ Agricultural terms of trade in August 2022 was 105,45 percent, decreased by 0,40 percent compared to the previous month.