Farmers' Terms of Trade Strengthen, Driven by Lower Production Costs
The Farmers’ Terms of Trade (NTP) in July 2026 was recorded at 127.84, a slight increase of 0.15 per cent compared to the previous month. Statistics Indonesia (BPS) stated the rise occurred because the decrease in costs borne by farmers was greater than the decrease in prices they received for their agricultural products.
Deputy for Distribution and Services Statistics at BPS, Ateng Hartono, said the NTP for July 2026 reached 127.84, up from 127.65 in June 2026. “The Farmers’ Terms of Trade in July 2026 was recorded at 127.84, or up 0.15 per cent compared to June 2026,” Ateng said during a press conference at the BPS Office in Jakarta.
Ateng explained that the index of prices received by farmers (It) fell by 0.10 per cent, while the index of prices paid by farmers (Ib) fell more sharply, by 0.25 per cent. This condition allowed the NTP to still experience an increase. According to him, the decline in prices at the farm level was mainly influenced by the weakening prices of several horticultural commodities. “The dominant commodities influencing the decline in the index of prices received by farmers are mainly cayenne pepper, shallots, tomatoes, and red chillies,” Ateng stated.
BPS noted that the horticulture sub-sector was the group that experienced the deepest NTP decline in July 2026, falling by 8.49 per cent. This decline was triggered by a drop in the index of prices received by horticultural farmers of 8.74 per cent, while the index of prices paid by farmers only fell by 0.28 per cent. Besides horticulture, the livestock sub-sector also recorded a decline in NTP during the same period.
Conversely, the fisheries sub-sector showed improvement. The Fisheries Terms of Trade (NTPi) increased by 1.01 per cent, supported by a rise in the fishermen’s terms of trade of 0.95 per cent and the fish cultivators’ terms of trade of 1.10 per cent. Ateng said the price increase at the fishermen level was mainly driven by commodities such as swimming crab, skipjack tuna, frigate tuna, and mackerel. Meanwhile, for fish cultivators, the increase was influenced by the prices of seaweed, milkfish, shrimp, and catfish.
In addition to the NTP, BPS also reported that the average price of rice at the mill level in July 2026 increased by 0.94 per cent compared to June 2026 and rose by 5.11 per cent compared to the same period last year. “The average price of rice at mills in July 2026 rose 0.94 per cent monthly and increased by 5.11 per cent annually,” Ateng said. Based on quality, the price of premium rice rose 0.44 per cent monthly and 10.02 per cent annually. Meanwhile, the price of medium rice increased by 1.25 per cent compared to the previous month and rose 3.24 per cent compared to July 2025. At the wholesale level, rice inflation was recorded at 0.61 per cent monthly and 4.11 per cent annually. At the retail level, rice inflation reached 0.49 per cent monthly and 3.10 per cent annually. Ateng added that the rice price data is a national average covering various qualities of rice across all regions of Indonesia.