Palm Oil Plantation Farmers' Exchange Rate Plummets Amidst Export Ban

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Viva Budy Kusnandar 06/06/2022 17:50 WIB

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The farmer exchange rate index (NTPR) in the Indonesian people's plantation sector fell by 9.29% (month-on-month) in May 2022, the sharpest decline compared to farmers in other sectors.

Monthly Changes in Farmers' Exchange Rate by Sector (May 2022)

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Monthly Changes in Farmers' Exchange Rate by Sector (May 2022)

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The Central Statistics Agency (BPS) reported that the combined farmer exchange rate (NTP) fell 2.81% (month-to-month/m-to-m) to 123.56 in May 2022 compared to the previous month. This is the second consecutive monthly decline.

The decrease in NTP is an indicator of declining farmer welfare, coinciding with a decrease in the index received by farmers (iT) and an increase in the index paid by farmers (iB).

Broken down by sector, the welfare of Indonesian plantation farmers experienced the sharpest decline in May 2022. This is reflected in the Indonesian plantation farmer exchange rate index (NTPR), which weakened by 9.29% (m-to-m) to 123.56.

The decline in the plantation farmer exchange rate was mainly triggered by a weakening of the Riau NTPR, which fell 16.35% (m-to-m) to 144.39 in May 2022, compared to 172.62 in the previous month.

Similarly, the food crop farmer exchange rate (NTPP) fell 0.32% (m-to-m) to 97.04 in May 2022.

The decline in the plantation and food crop NTP occurred amidst a ban on palm oil (crude palm oil/CPO) exports and its derivative products, which was in effect from April 28, 2022. However, the ban was eventually lifted, and exports were allowed again starting May 23, 2022.

Meanwhile, the livestock farmer exchange rate (NTPT) rose 0.07% (m-to-m) to 101.59 in May 2022.

Furthermore, the fisheries NTP rose 0.26% (m-to-m) to 106.33, and the horticultural crop NTP (NTPH) rose 2.75% (m-to-m) to 104.12.

Editor : Adi Ahdiat

"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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Palm Oil Plantation Farmers' Exchange Rate Plummets Amidst Export Ban

Palm Oil Plantation Farmers' Exchange Rate Plummets Amidst Export Ban

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Palm Oil Plantation Farmers' Exchange Rate Plummets Amidst Export Ban

Palm Oil Plantation Farmers' Exchange Rate Plummets Amidst Export Ban

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