Rice Prices Stable Despite Holidays

Kang Mi Jin  |  2015-02-23 11:45
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Sources in North Korea report that despite last years disappointing rice harvest, the market price of rice has continued to remain stable. Unlike previous years, where prices of items such as rice spiked just before the holidays, cost of the staple food saw minor fluctuations around the 5,000 KPW [0.63 USD] mark but were overall stable across the country right up to the 2015 Lunar New Year.

Analysis of source reports revealed that although most families purchase goods in the months leading up to and after January 1st and February 16th [Kim Jong Ils birthday], costs have remained relatively unwavering. Notwithstanding marginal differences that emerged regionally, overall market prices have been keeping with normal levels.

In particular, despite curtailed market activity due to the mobilization of residents for compost collection, the states "first call to battle" in 2015, there have been little to no changes in market prices. Sources determined that the galvanization and expansion of market activity compared to years prior has seen prices no longer affected by short-term constraints. 

It was normal for the cost of rice to increase every year just before the holidays from 500 KPW [0.06 USD] to even 1000 KPW [0.13 USD], a source in Yangkang Province told the Daily NK. Despite the recent back-to-back occurrence of Kim Jong Il's birthday and the Lunar New Year, the cost of rice has hovered at 5,000 KPW per kilogram with no noticeable fluctuations in the price of other goods. 

According to the source, since the end of last year to the present, the cost of 1kg of rice has risen or dropped approximately 500 KPW at times, but has shown no trends of instability, such as increases due to approaching national holidays or decreases due to distribution of rations. 

Its common for the cost of rice to start increasing from the end of December, when parties for the end the of the year occur all over the country. This generally continues through the Solar New Year [January 1st], February 16th [Kim Jong Ils birthday], and the Lunar New Year, but it didnt this year," he said, adding that even sharp jumps in prices typically emerging a day or two ahead of the holidays in the past have been absent this year. 

He offered two theories to explain the stable rice prices. Despite the drought last year, crop harvests in beolbangs [towns with expansive fields and rice paddies] were relatively good, he said, outlining his first hypothesis. He asserted the other contributing factor to be the 50,000 tons of food aid in rice provided from Russia last year. 

According to Daily NK's sources within the North, supply routes for goods in North Korean markets such as rice, industrial products, and side dishes have diversified compared to years past. This surge in the quantity of goods has made stable market distribution and consistent prices possible. In fact, not only have distribution systems expanded beyond the high dependence on Chinese imports and smuggling, market distribution is smoothly extending to other means, namely an autonomous national cottage industry and a growing manufacturing sector run by the emerging wealth class.

The state's role in dispensing of rations has also contributed significantly to the stability of market prices. North Korea has commenced the allotment of regular rations for Pyongyang residents, and last March and April potato rations were distributed in Yangkang Province. In addition, rations released to the Musan and Hyesan mines are also likely playing a part in the overall stability of rice prices. 

Still, some predict that the rice prices may increase in early April, the start of the farming hardship period. Many speculate that the cost will be heavily affected if demand for rice increases before and after the hardship season and the state fails to continue with the relatively stable distribution of rations to the aforementioned areas.

*Translated by Gloria Kang

 
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2017.06.28
Won Pyongyang Sinuiju Hyesan
Exchange Rate 8,070 8,050 8,095
Rice Price 5,800 6,000 5,900