At the time of writing, the North Korean rice harvest is being wrapped up and threshing is ongoing. Market prices have stayed relatively stable this year; where the political calendar has historically had a deleterious effect on market price inflation, in 2013 that effect has been rather less apparent.
This is partially down to the release of military grain stocks and bumper corn and potato harvests. According to inside sources, resultant quantities of public distribution and active market trading volumes are improving lives. The majority of people are still simply getting by, it is true; however, stable rice prices and rising demand for other products do indicate rising purchasing power on the middle rungs of the social ladder.
Looking at rice prices: on the 10th of this month rice was stable in Pyongyang and Sinuiju, rising a mere 300 won from 5,100 won to 5,400 won per kilo in the period since mid-September. In Hyesan, on the border with China, prices fell 200 won from mid-September, leaving rice selling for 5,800 won. With the exception of Hyesan, rice has been hovering around 5000 won in all regions since spring this year.
Relatively inaccessible Hyesan and surrounding areas are sometimes vulnerable to price fluctuations stemming from border controls, as a source from the city revealed to Daily NK on the 13th. “The price of rice suddenly shot up to 7,000 won late last month when the anti-air raid exercises took place, but we didn’t see any big fluctuations after that,” she said. “Many families still have potatoes and corn left over, so demand for rice has not increased and sales in the market are stable.”
Furthermore, “Smuggling remains simple; apart from at moments when the Central Party raises the issue or border guard units are changed. Because it’s not that hard, even lower peddlers can bring in rice from the outside on a daily basis.”
Meanwhile, a Pyongyang source revealed that following October 10th, Party Foundation Day, “temporary restrictions on movements of people were lifted and inter-provincial trade in rice and other goods was normalized. In Pyongyang distribution from the Upper [the state] is ongoing.”
The one major outlier from this general trend of stability is the price of meat, however. There are a number of people in the country who breed livestock for sale in markets; at the same time, stable public distribution of other daily necessities in the current period is permitting marginal groups to purchase meat, and this is driving up demand. At the time of writing, the price of pork in Hyesan is 22,000 won per kilo, adding 50% to the 15,000 won it cost in mid-September. The price is only marginally lower in Sinuiju and Pyongyang.
Partly, this rising demand can be attributed to sharply rising wages in some sectors. In just three months, wages for workers in mining and the steel industry have risen from around 3000 won to around 300,000 won, with 100,000 won provided in cash payments and the other 200,000 won in necessities, including grain.
The source agreed, saying, “Those workers who find themselves with large quantities of grain will sell it and buy pork with the windfall,” adding, “The sudden demand for pork has led to shortages.”
“In the past, people sold their goods and bought rice with the profits, but now people are buying more non-rice foods” the source went on. “The price of rice may hold steady going forward, but the price of pork, chicken, dog meat, and so forth will likely keep rising.”
