<![CDATA[This study aims to analyze the effect of grain prices at the farm level, milling, and rice pricesat the consumer level on the purchasing power of farmers in East Java, which is representedby the farmer exchange rate (NTP). The Data used is secondary data for the period 2020-2024 from BPS East Java and Disperindag East Java. The analysis was conducted usingVector Error Correction Model (VECM) to see the short and long term relationship. Theresults showed that the price of grain at the farm level and the price of rice at the consumerlevel is more influential on purchasing power than the price at the milling level. Grain priceincreases have a positive and significant effect on NTP both in the short and long term.Conversely, rising consumer rice prices negatively affect purchasing power. Meanwhile, theprice of grain in the mill does not have a significant effect, indicating the added value at thatpoint is not fully enjoyed by farmers. This study suggests the need for price protection at thefarm level and the strengthening of fair supply chains in order to maintain purchasing powerand improve the welfare of farmers in a sustainable manner]]>
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