Price Volatility of Main Food Commodity in Banyumas Regency Indonesia

Abstract

Agricultural product is commodity which tends to fluctuate. Price volatility is caused by the change of agricultural production due to climate change as well as pest and disease. Furthermore, it is also caused by the change of agricultural land and high demand of agricultural products on religious holidays. This study was conducted to examine how volatile some of main food commodities in Banyumas Regency. Secondary data analysis method with quantitative approach was used in this research. Time series data of some food commodity prices (rice IR 64, local soybean, maize, chili red peppers, onion and garlic) from January 2008 – December 2013 were utilized. The coefficient of variation was calculated to determine price volatility. The result showed that the price of red chili pepper, onion and garlic was tending to volatile. The coefficient of variation ratio of those commodities was about 20% - 35%. While the price of rice, local soybean and maize was stable. The coefficient of variation ratio of those commodities was less than 9%. This study also includes some policies that can be suggested to prevent price volatility.