North Korean rice prices, which had already been declining due to recent imports of food from China, are continuing their slow march downwards in December.
According to Daily NK’s regular survey of market prices, one kilogram of rice was selling for KPW 4,700 at one market in Pyongyang as of Dec. 10. This represents a slight drop from the price of KPW 4,740 recorded in the capital two weeks prior (Nov. 25).
Prices were similar in Sinuiju, North Pyongan Province, at KPW 4,720 per kilogram. This price represents a minor decrease of KPW 30 compared to Nov. 25 (KPW 4,750).
Hyesan, however, experienced a steeper drop in prices as rice fell from KPW 5,000 to KPW 4,830 per kilogram, a 3.4% decrease over a period of just two weeks.
This downward trend in prices has been more noticeable for commodities such as corn. Corn prices in Sinuiju, for example, fell from KPW 2,000 to KPW 1,900. Not only is this a 5% drop within two weeks, but it is also the first time that corn prices have dipped below the KPW 2,000 mark in over two years (since November 2021).
Meanwhile, corn prices in Pyongyang fell at a level similar to Sinuiju, and one kilogram currently sells for KPW 2,000.
As with rice, the decline in grain prices was particularly pronounced in the city of Hyesan. Corn prices in Hyesan fell 8.7% over the last two weeks, dropping from KPW 2,300 to KPW 2,100 as of Dec. 10.
The overall downward trend in grain prices can be attributed to a combination of both North Korean leader Kim Jong Un’s increase in grain imports and the new crops entering markets following the conclusion of the fall harvest. The steeper drop in prices in Hyesan compared to other regions is likely tied to the food imports passing through custom houses in Yanggang Province.
Daily NK reported in late November that imports of rice, cooking oil, and other food products from China have been entering North Korea through the Hyesan customs house.
Imports passing through customs houses in Yanggang Province, North Hamgyong Province, and elsewhere along the China-North Korea border remain limited in volume, but a portion of these imports appear to have made their way into markets, leading to a fall in grain prices.
Even as grain prices have fallen in recent months, the KPW-USD exchange rate has been trending upwards since September.
As of Dec. 10, the KPW-USD exchange rate in Pyongyang was KPW 8,500 to the dollar, a 1.2% rise compared to Nov. 25. The exchange rate rose a similar amount in other regions, including Sinuiju and Hyesan.
Demand for US dollars may be driven by internal indicators that trade is expanding in the new year. Earlier this month, Daily NK reported that the North Korean authorities had begun issuing entry visas to Chinese traders, investors, and technicians.
By contrast, the KPW-RMB exchange rate has been on a slow but steady decline. As of Dec. 10, the KPW-RMB exchange rate fell a consistent 1.6% across regions compared to two weeks prior. Daily NK’s survey recorded the exchange rate at KPW 1,200 to the yuan in Pyongyang, KPW 1,210 in Sinuiju, and KPW 1,210 in Hyesan.
Translated by Rose Adams. Edited by Robert Lauler.
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