Farmer Terms of Trade in East Nusa Tenggara Rises 1.10% in August 2026

Kupang — Farmer Terms of Trade (Nilai Tukar Petani, NTP) in East Nusa Tenggara rose in August 2026, reaching an index level of 101.29, according to data from the provincial branch of Indonesia’s statistics agency and the provincial agriculture office. The August reading was up 1.10% from 100.19 in July, indicating a modest improvement in farmers’ purchasing power during the month.

The provincial agriculture and food security service reports that the August increase in NTP was driven by a 0.99% rise in the index of prices received by farmers and a 0.10% decline in the index of prices paid by farmers. In a separate article citing the same statistics release, the agency notes that the gain reflects higher farm-gate prices alongside slightly lower costs for consumption, production inputs and capital goods.

Officials attribute the change to movements in both sides of the farmer price relationship. According to the provincial agriculture office, the improvement in the price index received by farmers means they earned more for their products on average, while the small fall in the price index paid suggests a marginal easing in living and production costs. The statistics release quoted by the provincial agriculture service adds that the reduced costs cover consumer goods, production goods and some capital items, supporting the overall rise in NTP.

What the August figures show

Farmer Terms of Trade is a ratio comparing prices received by farmers for their output with prices paid for household consumption and production needs. A level above 100 generally indicates that the prices received are relatively favourable compared with the prices paid. With NTP at 101.29 in August, East Nusa Tenggara farmers on average saw a slightly stronger exchange position than in July.

The provincial agriculture office describes the August increase as a sign that farmers’ exchange value is strengthening, as they can obtain more goods and services from their production income. However, available public releases focus on province-wide aggregates and do not break down the NTP movement by district or commodity, leaving the distribution of gains across different farming communities unclear.

Local media and official reports frequently note that agriculture, forestry and fisheries remain a major pillar of East Nusa Tenggara’s economy. In a 2025 economic release, the statistics agency said these sectors contributed 30.48% of the province’s gross regional domestic product in the second quarter of that year, while household consumption accounted for 64.87% of expenditure. This structural picture underscores why changes in NTP are closely watched as an indicator of rural economic conditions.

Implications for rural businesses

The August 2026 increase in NTP suggests that, on average, farmers in East Nusa Tenggara had slightly more purchasing power, which can support demand for consumer goods, agricultural inputs and financial services in rural areas. The combination of higher output prices and marginally lower input and consumption costs is generally favourable for farm households’ cash flow.

For retailers, traders and lenders operating in the province, the latest NTP reading offers a positive signal but does not by itself quantify changes in sales, investment or credit risk. Without detailed sub-sector and district data, it is not possible from the published figures to identify which commodities or regions benefited most from the August movement, or whether some groups of farmers experienced weaker conditions.

Economic context

The wider provincial economy has shown relatively strong performance in recent years. In a 2025 press release, the statistics agency reported that East Nusa Tenggara’s economy grew 5.44% year-on-year in the second quarter of 2025, outpacing the national average, with agriculture, forestry and fisheries the largest contributor by sector. Household consumption was the dominant component on the expenditure side, reinforcing the importance of rural incomes and farm households to overall demand.

While those growth figures relate to 2025 rather than 2026, they illustrate the province’s reliance on agriculture and household spending. Against that backdrop, the August 2026 rise in NTP to 101.29 and the 1.10% month-on-month increase provide a timely snapshot of improving terms of trade for farmers, even as more granular data would be needed to assess how the gains are shared across East Nusa Tenggara’s diverse rural communities.

Sources

• Dinas Pertanian dan Ketahanan Pangan Provinsi NTT – "NTP NTT Agustus 2026 Naik 1,10 Persen, Daya Tukar Petani Semakin Menguat"
• SiaranTimor – "Ekonomi NTT Tumbuh 5,44 Persen di Triwulan II-2025, Melewati Rata-Rata Nasional"
• Badan Pusat Statistik Provinsi Nusa Tenggara Timur – "Ekonomi Nusa Tenggara Timur Triwulan I-2025 Tumbuh 4,55 Persen" (includes Q2 2025 figures)