BPS Records 0.42% Increase in Farmer Exchange Rate in March 2022

The Central Bureau of Statistics (BPS) reported that the national farmer exchange rate (NTP) increased by 0.42% in March 2022 to 109.29, compared to 108.83 in February. This indicates a continued improvement in the welfare of farmers.

The farmer exchange rate is estimated to have continuously recorded a surplus above 100 since at least July 2020.

The NTP is one indicator used to assess the purchasing power of farmers in rural areas. It also reflects the terms of trade of agricultural products with goods and services consumed and used for production costs.

The increase in the NTP was due to the Index of Prices Received by Farmers (It) rising by 0.99 percent, higher than the increase in the Index of Prices Paid by Farmers (Ib) of 0.57 percent.

In March 2022, the NTP in Riau Province experienced the highest increase (3.56 percent) compared to other provinces. Conversely, the NTP in Banten Province experienced the largest decrease (1.70 percent) compared to other provinces.

By sector, not all NTPs were recorded above 100. In the food crop sector, farmers are estimated to have recorded a deficit with an NTP of 99.23 in March. This figure marks a 1.19 percent decrease from February.

The downward trend in the NTP for the food crop sector is in line with the decrease in paddy prices at both the farmer and milling levels amid the peak paddy harvest season in April.