Statistics Indonesia (BPS) recorded the national farmer’s exchange rate (NTP) in September 2022 at 106.82, an increase of 0.49 percent as compared to the previous month’s NTP.
Head of BPS Margo Yuwono, in his presentation in Jakarta on Monday, explained that the increase in NTP was due to the price index received by farmers (It) that rose 1.62 percent higher than the rise in the price index paid by farmers (Ib) by 1.13 percent.
“Hence, the NTP increases because the increase in the price index received by farmers is higher than the index that farmers have to pay,” he stated.
Yuwono said the commodities that contributed to the increase in the price index received by farmers were palm oil, unhulled rice, coffee, and cayenne pepper.
Meanwhile, farmers have to pay more as there is a surge in prices in their households due to the increase in the rates of gasoline, rice, filtered cigarettes, and motorized transportation in the city.
If viewed by sub-sector, the increase in NTP in September 2022 was influenced by the increase in NTP in two agricultural sub-sectors: the Food Crops Sub-sector by 1.49 percent, and the People’s Plantation Crops Sub-sector by 0.62 percent.
Meanwhile, three other sub-sectors experienced a decrease in NTP: the horticultural crops sub-sector by 1.86 percent, the livestock sub-sector by 0.87 percent, and the fisheries sub-sector by 1.17 percent.
“The sharpest decline was observed in the fisheries sub-sector, especially the capture fisheries sub-sector, which fell sharply, 1.84 percent. Meanwhile, cultivation fisheries fell by only 0.11 percent,” he remarked.
Cumulatively, the NTP from January to September 2022 was 3.26 percent higher nationally than the NTP in 2021 in the same period.
Farmer’s Exchange Rate (NTP) is the ratio of the price index received by farmers (It) to the index of price paid by farmers (Ib).
NTP is one indicator to see the level of ability and purchasing power of farmers in rural areas. NTP also shows the terms of trade of agricultural products with goods and services consumed as well as for production costs.
Source: Antara News