Farmers’ Terms of Trade (FTT) December 2021 was 108.34 or up 1.08 percent.

Release Date	:	January 3, 2022
File Size	:	3.35 MB

Abstract

FTT is ratio of the index of prices received by farmers (It) and the index of prices paid by farmers (Ib).
FTT is an indicator to measure the farmers’ purchasing power parity in rural areas. FTT shows the terms of trade of agricultural products with goods and services consumption and production costs.
In December2021, nationa lFTT was 108.34 or increased by 1.08 percent compared with that in November 2021. The increase of FTT was due to the increase in index of prices received by farmers (It) at 1.72 percent higher than the increase in index of prices paid by farmers (Ib) at 0.63 percent.
Nationally, FTT was 104.64 in January–December 2021, with the index of prices received by farmers (It) was 112.94 and the index of prices paid by farmers (Ib) was 107.93.
In December 2021, Kalimantan Timur Province experienced the highest increase of FTT at 2.59 percent. On the other hand, DKI Jakarta Province had the highest decrease of FTT at 0.70 percent.
The price index of household consumption (IKRT) in December 2021 increased by 0.83 percent in Indonesia, which was due to the increase in all of the indexes of expenditure groups.
Nationally, Agriculture’s Terms of Trade (NTUP) was 108.52 in December 2021 or increased by 1.40 percent compared with November 2021.

Dried harvested grain (GKP) price at the farmer level increased by 0.91 percent and the price of premium quality rice at huller level increased by 0.95 percent.

There were 1,387 paddy sales transactions recorded in 26 provinces during December 2021. The percentage of transactions varied by the quality of the paddy, which was the dried harvested grain (GKP) 55.59 percent, dried unhusked grain (GKG) 27.97 percent, and the other quality 16.44 percent.
During December 2021, the average GKP price at the farmer level was Rp4,773 per kg or increased by 2.64 percent compared to the price of similar quality paddy in the previous month. Likewise, the average GKP price at the huller level was Rp4,876 per kg or increased by 2.60 percent. The average price of GKG at the farmer level was Rp5,064 per kg or increased by 0.08 percent, meanwhile at the huller level was Rp5,171 per kg or decreased by 0.02 percent. The price of the other quality paddy at the farmer level was Rp4,303 per kg or decreased by 2.35 percent, while at the huller level was Rp4,391 per kg or decreased by 2.22 percent.
Compared to December 2020, the average price of paddy at the farmer level in December 2021 declined for GKP, GKG, and the other quality paddy by 0.07 percent, 5.46 percent, and 3.07 percent, respectively. Likewise, at the huller level, the average price of paddy in December 2021 for GKP quality rose by 0.03 percent, while for GKG and the other quality paddy decreased by 5.56 percent and 2.90 percent, respectively.
In December 2021, the survey of rice producer prices at the huller level was conducted in 31 provinces and recorded 1,126 observations from 864 milling businesses.
Compared to the previous month, the average price of premium quality rice at the huller level was Rp9,673 per kg or increased by 1.40 percent. The medium quality rice at the huller level was Rp9,128 per kg or increased by 0.62 percent. The average price of the other quality rice at the huller level was Rp8,889 per kg or increased by 2.04 percent.
Compared to December 2020, the average price of rice at the huller level for premium, medium, and the other quality fell by 1.18 percent, 2.71 percent, and 1.84 percent, respectively.

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