Objective of the Index
To measure average variations in national monthly prices of a basket of fertilizers and pesticides widely used in agricultural activity. This is achieved by looking the compositions with the greatest presence in the market for the most widely used fertilizers and pesticides.
It synthesizes or summarizes the behavior of prices of a very heterogeneous set of inputs. By collecting these variations in the index value, it serves as a reference for different agents of the sector to analyze their behavior over time and support decision-making.
Calculation of the Index
It is a weighted average of prices collected by the SIPSA (DANE) in existing points of sale, in municipalities included in the coverage of this system. The Laspeyres formula is used for its calculation, where weighting or relative weight of the price of each input is determined by its participation in sales tracked by the Monitoring Unit of the Directorate of Agricultural Chains of the Ministry of Agriculture and Rural Development.
Information for the Index
These are prices paid by producers at points of sale, for each unit of input paid in cash. In the Index, fertilizers are merged into two subgroups, the simple ones with 5 compositions and the compounds with 10 compositions. Meanwhile, pesticides are disaggregated according to their purpose into herbicides, fungicides and insecticides; subgroups are disaggregated into 12 and 9 active ingredients respectively.
Basket of inputs
A total of 168 inputs, 64 fertilizers and 104 pesticides are included for the calculation of the Index, corresponding to those with the greatest market presence. This selection was made taking into account ordering observed in sales in 2019. Details of the compositions and active ingredients is presented in the attached table.
Other items in the index
Periodicity: It will be updated monthly at the close of field collection, review of figures and disclosure in the SIPSA bulletin. Delivery of values for the Index with its breakdown into groups, subgroups, composition level and active components will be carried out in the third week of each month.
Geographic coverage: Figures are at a national level.
Index base: 2019 average figures.