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Farmer Exchange Rate in October 2020 Increases by 0.26%

November 4, 2020 | BPS Activities

Farmer Exchange Rate increased 0.26%

NTP is an indicator to see the level of ability / purchasing power of farmers in rural areas. NTP also shows the exchange power (term of trade) from the prices of agricultural products with goods and services consumed as well as for production costs.

The Farmer Exchange Rate (NTP) in October rose 0.26% compared to September 2020. The increase in NTP in September 2020 was influenced by the increase in NTP in two sub-sectors, hoticulture by 2.17%, and fisheries by 0.65%. While the other three sub-sectors experienced a decrease in index, namely food crops down 0.07%, plantations down 0.29% and livestock down 0.24%.

The increase in NTP was due to the Price Index Received by Farmers (It) which rose 0.58%, which was higher than the Price Index Paid by Farmers (Ib) which rose 0.32%. It rose due to rising commodity prices in all subsectors. From the side of Ib, the increase is influenced by the price of goods consumed by farmers in rural areas with an inflation of 0.40% and the price of capital goods rising 0.15%.

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