Rice prices on steady decline

Kang Mi Jin  |  2017-02-06 13:19
Read in Korean  
Rice prices in North Koreas markets are reportedly on a downward trend. It was originally expected that the sanctions implemented by the international community would lead to inflation due to trade reductions, but a year after the sanctions were implemented, prices have instead fallen due to the steady development of marketization and active trade with China.

According to recent findings by Daily NK, rice is trading at 4,000 KPW (per kg) in Pyongyang, 3970 KPW in Sinuiju, North Pyongan Province, and 4190 KPW in Hyesan, Ryanggang Province. This represents an approximate 1,000 KPW reduction from a year ago (Pyongyang 5019 KPW, Sinuiju 4970 KPW, Hyesan 4980 KPW).

A source in North Hamgyong Province told Daily NK on January 30, "I know that China donated a large amount of rice after the flood damage in September last year. I also heard that rice farming in North and South and Hwanghae Provinces and South Pyongan Province went well."

The price of rice in Hoeryong City (North Hamgyong Province), which suffered severe flood damage last year, is at approximately 3,600 KPW. "Rice was about 5,000 KPW in January, but prices have fallen now, so women preparing for the New Year's holiday were fairly pleased," she said.

"Rice prices have also been slowly dropping since the end of last year at the Pyongyang markets and reached 4,000 KPW this year. Traders (who purchase products to sell elsewhere) lining up at the market entrance to buy rice coming in from the countryside are saying that the amount of rice circulating in the markets has definitely increased compared to January last year, a source in South Pyongan Province said.

"Rice prices in most markets in Pyongyang are declining, with more than 70% of rice being imported from China. People usually mix Chinese rice with Korean rice because Chinese rice is too dry (as if it has been in storage for a year), unlike the sticky Korean type."

VOA (Voice of America) reported on January 26 that North Korea's total rice imports from China amounted to 4.2 million tons last year (2016), a 2.4-fold increase over the previous year (2015). This statistic was put forward by Kwon Tae Jin, Director of East Asia Research at the GS&J Institute, citing an analysis of data published by China's General Administration of Customs.

Sources within North Korea have consistently pointed out that revitalized market activities have played a role. "In the past (Kim Jong Il's time), rice prices increased whenever the regime cracked down on market activities, but people are now able to do business without many restrictions. In the current situation, its unlikely that the price will suddenly jump," a source in Ryanggang Province said.

Market stability has been a hallmark of Kim Jong Uns rule and is thought to be reducing backlash from the general public as their quality of life improves.

However, the ongoing decline in rice prices is likely to lead to livelihood instability for farmers. If rice prices fall while the prices of other commodities (Chinese imports) remain the same, issues are likely to arise.

"The prices of commodities other than rice have mostly increased. As a result, a growing number of farmers are worrying that they will be unable to survive on farming alone,'" the Ryanggang-based source said.

*Translated by Yejie Kim
*Edited by Lee Farrand

 
Advertisements, links with an http address and inappropriate language will be deleted.

2017.09.27
Won Pyongyang Sinuiju Hyesan
Exchange Rate 8,100 8,125 8,240
Rice Price 6,100 6,085 6,100