Farmers’ Terms of Trade ( FTT) August 2022 was 106.31 or increased by 1.97 percent

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Release Date	:	September 1, 2022
File Size	:	2.21 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 August 2022, the national FTT was 106.31 or increased by 1.97 percent compared with that in July 2022. The increased in FTT was due to the increased in the index of prices received by farmers (It) at 1.28 percent while the index of prices paid by farmers (Ib) decrease at 0.68 percent.
In August 2022, Riau Province experienced the highest increase in FTT at 12.63 percent. On the other hand, Kepulauan Riau Province had the highest decrease in FTT at 1.34 percent.
The price index of household consumption (IKRT) in August 2022 decreased by 1.04 percent in Indonesia, which was due to the decrease in indexes of food, beverage, and tobacco expenditure groups.
Nationally, Agriculture’s Terms of Trade (NTUP) was 106.63 in August 2022 or increased by 1.10 percent compared with July 2022.
Dried harvested grain (GKP) price at the farmer level increased by 6.49 percent and the price of premium quality rice at huller level increased by 2.83 percent.
There were 1,909 paddy sales transactions recorded in 26 provinces during August 2022. The percentage of transactions varied by the quality of the paddy, which was the dried harvested grain (GKP) 62.91 percent, dried unhusked grain (GKG) 24.20 percent, and the other quality 12.89 percent.
In August 2022, the average GKP price at the farmer level was Rp4,865 per kg, or increased by 6.49 percent compared to the price of similar quality paddy in the previous month. Likewise, the average GKP price at the huller level was Rp4,986 per kg, or increased by 6.49 percent. The average price of GKG at the farmer level was Rp5,495 per kg, or increased by 5.47 percent. Meanwhile, at the huller level was Rp5,615 per kg, or increased by 5.49 percent. The price of the other quality paddy at the farmer level was Rp4,532 per kg, or increased by 5.27 percent. While at the huller level was Rp4,640 per kg, or increased by 5.16 percent.
Compared to August 2021, the average price of paddy at the farmer level in August 2022 for GKP, GKG, and the other quality paddy increased by 9.38 percent, 9.07 percent, and 6.84 percent, respectively. At the huller level, the average price of paddy in August 2022 for GKP, GKG, and the other quality paddy increased by 9.70 percent, 9.07 percent, and 6.88 percent, respectively.
In August 2022, the survey of rice producer prices at the huller level was conducted in 31 provinces and recorded 1,132 observations from 891 milling businesses.
Compared to the previous month, the average price of premium quality rice at the huller level was Rp9,901 per kg, or increased by 2.83 percent. The price of medium quality rice at the huller level was Rp9,358 per kg, or increased by 2.93 percent, and the average price of the other quality rice at the huller level was Rp9,069 per kg, or increased by 1.84 percent.
Compared to August 2021, the average price of rice at the huller level for premium, medium, and the other quality increased by 4.23 percent, 4.96 percent, and 4.38 percent, respectively.