Food Prices Rise, Farmers' Purchasing Power Improves

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08/06/2017 11:03 WIB

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Farmer Exchange Rate Index 2016-2017

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The Central Statistics Agency (BPS) recorded the Farmer Exchange Rate (NTP) in May 2017 at 100.15, a slight increase of 0.14 percent compared to the previous month's 100.01. This increase in NTP was driven by a 0.85 percent rise in the food crop subsector. The increase in NTP was also due to the Index of Prices Received by Farmers (It) rising by 0.73 percent, exceeding the increase in the Index of Prices Paid by Farmers (Ib) of 0.59 percent. This indicates an improvement in farmers' purchasing power, particularly those in food crop farming.

BPS also noted that this increase is still related to rising food prices in the market. This is an early indication that farmers' welfare has slightly improved, although NTP is only one indicator for measuring the welfare of farmers in Indonesia. However, the 2017 NTP remains significantly below its highest level in the past year, which was 102.2, achieved in September 2016.

"Disclosure: This is an AI-generated translation of the original article. We strive for accuracy, but please note that automated translations may contain errors or slight inconsistencies."

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Food Prices Rise, Farmers' Purchasing Power Improves

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Food Prices Rise, Farmers' Purchasing Power Improves

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