NTB, October 2022: Farmers Terms of Trade Rate Rose by 0,09 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 October 2022 was 105,24, increased by 0,09 percent compared to the previous month. It is due to the percentage increase of the price indices received by farmers being higher than the price paid by the farmers. The previous increased by 0,13 percent, while the latter increased only by 0,03 percent.

▪ The value of farmer terms of trade by sub sector as follows: food crops about 104,16; horticulture about 117,90; smallholders estate crops about 90,71; animal husbandry about 105,55; and fishery about 112,68.

▪ In October 2022, the Household Consumption Indices (IKRT) fell because the value of all expenditure groups went down except for Food, beverages and tobacco; and Recreation, sport and culture.

▪ Agricultural terms of trade in October 2022 was 105,20 percent, decreased by 0,09 percent compared to the previous month.