Farmers’ Terms of Trade (FTT) July 2022 was 104.25 or fall 1.61 percent

Release Date	:	August 1, 2022
File Size	:	6.78 MB

Abstract

FTT is the 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 July 2022, the national FTT was 104.25 or decreased by 1.61 percent compared with that in June 2022. The decreased in FTT was due to the decrease in the index of prices received by farmers (It) at 1.04 percent while the index of prices paid by farmers (Ib) increase at 0.58 percent.
In July 2022, Riau Province experienced the highest decerease in FTT at 11.43 percent. On the other hand, Kepulauan Riau Province had the highest increase in FTT at 1.70 percent.
The price index of household consumption (IKRT) in July 2022 increased by 0.71 percent in Indonesia, which was due to the increase in mostly of the indexes of expenditure groups.
Nationally, Agriculture’s Terms of Trade (NTUP) was 105.47 in July 2022 or decreased by 1.34 percent compared with June 2022.
Dried harvested grain (GKP) price at the farmer level increased by 0.68 percent and the price of premium quality rice at huller level increased by 1.38 percent.
There were 1,832 paddy sales transactions recorded in 27 provinces during July 2022. The percentage of transactions varied by the quality of the paddy, which was the dried harvested grain (GKP) at 66.27 percent, dried unhusked grain (GKG) at 21.56 percent, and the other quality at 12.17 percent.
In July 2022, the average GKP price at the farmer level was Rp4,569 per kg, or increased by 0.68 percent compared to the price of similar quality paddy in the previous month. Likewise, the average GKP price at the huller level was Rp4,682 per kg, or increased by 0.71 percent. The average price of GKG at the farmer level was Rp5,210 per kg, or increased by 1.19 percent. Meanwhile, at the huller level was Rp5,323 per kg, or increased by 1.03 percent. The price of the other quality paddy at the farmer level was Rp4,305 per kg, or increased by 0.78 percent. While at the huller level was Rp4,412 per kg, or increased by 0.88 percent.
Compared to July 2021, the average price of paddy at the farmer level in July 2022 for GKP, GKG and the other quality paddy increased by 5.99 percent, 6.89 percent, and 8.21 percent, respectively. At the huller level, the average price of paddy in July 2022 for GKP, GKG, and the other quality paddy increased by 6.22 percent, 6.42 percent, and 8.34 percent, respectively.
In July 2022, the survey of rice producer prices at the huller level was conducted in 31 provinces and recorded 1,132 observations from 893 milling businesses.
Compared to the previous month, the average price of premium quality rice at the huller level was Rp9,629 per kg, or increased by 1.38 percent. The price of medium quality rice at the huller level was Rp9,092 per kg, or increased by 0.93 percent, and the average price of the other quality rice at the huller level was Rp8,906 per kg, or increased by 0.64 percent.
Compared to July 2021, the average price of rice at the huller level for premium, medium, and the other quality increased by 2.41 percent, 2.31 percent, and 5.00 percent, respectively.