Farmers' Exchange Rate Increased by 0.18% in March 2021

Indonesia's Central Bureau of Statistics (BPS) recorded a farmer exchange rate (NTP) of 103.29 in March 2021. This figure is up 0.18% compared to February 2021, which stood at 103.10.

This increase was due to the index of agricultural output prices rising higher than the index of goods and services consumed by households. The index also rose higher than production costs and additions of capital goods.

The increase in NTP in March 2021 was influenced by increases in NTP in three agricultural sub-sectors. Specifically, the NTP for the horticulture sub-sector rose by 1.8%, the people's plantation sub-sector by 3.08%, and the livestock sub-sector by 0.03%. Meanwhile, the NTP for the food crops and fisheries sub-sectors fell by 1.83% and 0.28%, respectively.

For information, NTP is the ratio of the price received by farmers to the price index paid by farmers. NTP is an indicator to assess the ability or purchasing power of farmers in rural areas. NTP also shows the exchange rate of agricultural products for goods and services consumed and for production costs. Farmers are considered prosperous if the NTP is above 100.