Farmers’ Terms of Trade (FTT) March 2022 was 109.29 or up 0.42 percent

Release Date	:	April 1, 2022
File Size	:	3 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 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 March 2022, national FTT was 109.29 or increased by 0.42 percent compared with that in February 2022. The increase of FTT was due to the increase in the index of prices received by farmers (It) at 0.99 percent higher than the increase in the index of prices paid by farmers (Ib) at 0.57 percent.
In March 2022, Riau Province experienced the highest increase of FTT at 3.56 percent. On the other hand, Banten Province had the highest decrease of FTT at 1.70 percent.
The price index of household consumption (IKRT) in March 2022 increased by 0.70 percent in Indonesia, which was due to the increase in almost all of the indexes of expenditure groups.
Nationally, Agriculture’s Terms of Trade (NTUP) was 109.25 in March 2022 or increased by 0.67 percent compared with February 2022.
Dried harvested grain (GKP) price at the farmer level decreased by 5.76 percent and the price of premium quality rice at huller level decreased by 0.41 percent.

There were 2,269 paddy sales transactions recorded in 28 provinces during March 2022. The percentage of transactions varied by the quality of the paddy, which was the dried harvested grain (GKP) 68.71 percent, dried unhusked grain (GKG) 14.15 percent, and the other quality 17.14 percent.

During March 2022, the average GKP price at the farmer level was Rp4,570 per kg, or decreased by 5.76 percent compared to the price of similar quality paddy in the previous month. Likewise, the average GKP price at the huller level was Rp4,704 per kg, or decreased by 5.20 percent. The average price of GKG at the farmer level was Rp5,350 per kg, or decreased by 1.81 percent. Meanwhile, at the huller level was Rp5,474 per kg, or decreased by 1.70 percent. The price of the other quality paddy at the farmer level was Rp4,257 per kg, or decreased by 4.43 percent. While at the huller level was Rp4,377 per kg, or decreased by 3.66 percent.
Compared to March 2021, the average price of paddy at the farmer level in March 2022 for GKP, GKG, and the other quality paddy increased by 4.22 percent, 2.61 percent, and 5.28 percent, respectively. Likewise, at the huller level, the average price of paddy in March 2022 for GKP, GKG, and the other quality paddy increased by 4.98 percent, 2.68 percent, and 5.77 percent, respectively.
In March 2022, the survey of rice producer prices at the huller level was conducted in 31 provinces and recorded 1,135 observations from 890 milling businesses.
Compared to the previous month, the average price of premium quality rice at the huller level was Rp9,787 per kg, or decreased by 0.41 percent. The price of medium quality rice at the huller level was Rp9,323 per kg, or decreased by 0.38 percent, and the average price of the other quality rice at the huller level was Rp9,061 per kg, or decreased by 0.01 percent.
Compared to March 2021, the average price of rice at the huller level for premium, medium, and the other quality increased by 1.87 percent, 1.85 percent and 3.65 percent, respectively.

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