The impacts of harvest on price index of producer (Case study: Hamparan Perak Subdistrict, Deli Serdang Regency, Indonesia)

Abstract

Producers price index is a means of measuring the welfare of farmers, so calculating producers price index can know the level of welfare of farmers. This is related to the purchasing power in the fulfilment of household consumption needs. One of the classic problems that rice farmers often encounter is the drop in the selling price of grain/rice during harvest time, and rising prices when outside the harvest. The research objective is to analyse the impacts of harvest on producers’ price index. Producers price index at harvest time is lower than non-harvest, so that farmer’s welfare during harvest time is decreasing seen from decreasing of farmers’ producers’ price index of the rice farmer. Low producers price index due to high harvest resulted in decreasing consumption of home staple foods.