Food Price Anomalies on Farmer Welfare and Inflation: A Case in Indonesia

(Pages 2179-2191)

Wahyu Ario Pratomo1, Wahyu Sugeng Imam Soeparno1,*, Arif Rahman1, Agus Suriadi2, Muhammad Khaliqi3 and Aam Slamet Rusydiana4
1Faculty of Economics and Business, Universitas Sumatera Utara, Indonesia.
2Faculty of Social Science and Political Science, Universitas Sumatera Utara, Indonesia.
3Faculty of Agriculture, Universitas Sumatera Utara, Indonesia.
4SMART Indonesia.


This study aims to analyze the relationship between food price anomaly at the producer and final market level on farmer welfare and inflation in North Sumatra, Indonesia. The observation period is 2018-2022, using monthly data. The method used is quantitative descriptive, through independent-t different test tools, price variation coefficients, and their changes. Based on observations of price developments, it is known that of the eight commodities analyzed, only rice whose prices tend to be stable. The description of price developments among groups of business actors shows that the margins obtained by farmers due to price fluctuations are not as large as those obtained in the final market. The results of the different test show that the prices from farmers for eight food commodities experience significant differences compared to most groups of business actors. This implies that price increases in the final market do not have a significant impact on farmers' welfare. Based on the value of the coefficient of variation, rice, beef and cooking oil are food ingredients with very stable prices. The price of chicken eggs is stable, while the price of chicken meat is more volatile. Meanwhile, red chili and cayenne pepper have a large coefficient of variation. This has had quite a big impact on North Sumatra's inflation.


Food Price Anomaly, Farmer Welfare, Inflation.

JEL Classification Codes:

E30; E31; E64.

How to Cite:

Wahyu Ario Pratomo, Wahyu Sugeng Imam Soeparno, Arif Rahman, Agus Suriadi, Muhammad Khaliqi and Aam Slamet Rusydiana. Food Price Anomalies on Farmer Welfare and Inflation: A Case in Indonesia. [ref]: vol.21.2023. available at:

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