Thing discussed in the meeting was the Target of Farmer's Exchange Rate. Farmer's Exchange Rate is one indicators in development of food and agriculture sector in 2020-2024 RPJMN.
Farmer's Exchange Rate is also one indicators used to measure the ability or purchasing power of farmers as well as the exchange power of agricultural products with goods and services consumed as well as production costs.
NTP is a comparison between the price index received (It) and paid (Ib) by farmers, where if the NTP value is more than 100, it can be interpreted that farmers' income is greater than their expenditure.
The price index received by farmers is strongly influenced by agricultural production policies and agricultural production price policies. Meanwhile, the price index paid by farmers is strongly influenced by subsidized policies or prices for fuel, food, housing, health, education, and subsidized policies or prices for agricultural inputs.
Minister Suharso said, in an effort to achieve target of increasing NTP, a double track strategy is needed which consists of several things. First, reducing farm production costs with labor-intensive programs, intensive support for production facilities, agricultural mechanization, support for agricultural production efficiency, and support for social security programs for farming families such as food, education, and health.
Second, increasing market access and distribution of agricultural products, maximizing the cold chain system, downstreaming value added, setting reference prices, establishing farmer corporations and building fair agricultural market conditions for producers and consumers.
(Sato) OMIKAMI-TV
Source : Ministry of National Development Planning/Bappenas
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