With farming season in full swing in the
border areas of North Korea, rice prices in the marketplace have seen a small
rise, but oil prices have dipped, providing a little relief in people’s
livelihoods. The recent tightening of regulations on borders has made illegal
imports more difficult, driving up rice prices, while the steady supply of
imported oil from Russia has contributed to its declining cost,
Daily NK has learned.
“The ongoing crackdown on the borders has
driven up the price of rice and other grains, but the price of diesel oil and
gasoline has dropped,” a source from Yangkang Province said. “Along with
warming ties between North Korea and Russia, we saw rice coming into the
country at the end of last year, but recently, we’re seeing gasoline and diesel.”
“It cost roughly 4,000 KPW [0.49 USD] for 1kg of rice
until the end of last month, but that price has spiked by 1,000 KPW [0.12 USD], so you now
have to pay 5,000 KPW [0.62 USD] at the Hyesan Market,” he added. “The supply of rice to
markets near the borders has been unsteady because of the strengthened
crackdown on smugglers, causing an increase in prices.”
He cited gasoline and other oil imports
from Russia as cause for the noticeable decline in oil prices, noting that
people are relieved that the cost of fuel did not rise along with that of rice as predicted.
As of last month, gasoline traded for
11,000 KPW [1.36 USD] per kilogram, while diesel fetched 9,000 KPW [1.11 USD], but prices now stand at
8,450 KPW [1.04 USD] and 5,200 KPW [0.64 USD], respectively, according to the source. The rise in rice
prices had become a source of concern, but the cheaper oil has provided much
relief to many including wholesale vendors and truck operators, explained the
source.
“Before the price of rice begun to crawl up
in mid-April, the cost was relatively stable, making things much more manageable
for people,” the source said. However, the recent tightening of surveillance on
the borders has not surprised many, with people complaining about the routine
crackdowns that pose challenges to their everyday lives.
“Many of the smugglers have gone under
these days or have been caught. The result has been an increase in the price of
rice,” the source said, going on to point out how the recent hike highlighted
the pronounced influence smuggled rice has on market prices.
“People have been showing mixed feelings
about the officials who are pushing ahead with the crackdowns. Some say these
officials are only interested in safeguarding their own interests while taking
advantage of the citizens. While others say they have no choice since they have
to fulfill mandates from authorities above them, even if they are fully aware
that people cannot survive without the jangmadang (market),” the source added.
In regard to the crackdown on borders, a
source in Dandong said, “The recent clampdown was implemented by North Korean
authorities in order to prevent information from outside the country trickling
in and that from within getting out,” adding that traders selling rice to North
Korean smugglers have “taken a pounding” as a result of the crackdown.
