Following a decision by North Korea’s government to supply grain to state-run food shops late last year, the country’s rice prices appear to have fallen slightly with the start of the new year.
According to Daily NK’s regular survey of North Korean market prices, a kilogram of rice cost KPW 5,530 in Pyongyang as of Jan. 9.
After rising to KPW 6,000 a kilo at the end of November, the price of North Korean rice has fallen back into the KPW 5,500-5,600 range.
The price of rice as of Jan. 9 in Sinuiju and Hyesan was similar: KPW 5,550 and KWP 5,620, respectively.
It appears the North Korean government’s move at the end of last year to sell grain through state-run food shops nationwide — ostensibly to mark the 10th year of North Korean leader Kim Jong Un’s reign and the legislation of North Korea’s nuclear policy — had a slight impact on lowering market rice prices.
With the authorities selling rice through state-run food shops at prices 15 to 25% lower than the market price, demand for rice at markets dropped, with the price falling accordingly.
However, compared to the price of rice in early January over the last three years, the current price is relatively high.
On Jan. 11 of last year, a kilogram of rice cost KPW 4,500 in Pyongyang.
On Jan. 11, 2021, it cost KPW 3,500, while on Jan. 1, 2020, it cost KPW 4,350.
This means the current price is as much as 55% higher or more than it was at the same time in previous years.
The price movement appears connected with North Korea’s failure to significantly expand agricultural production this year compared to years past. The price of rice also may be linked with the rise in market prices across the board due to COVID-19, including industrial goods and imports.
CORN PRICES INCREASE, ALBEIT SLIGHTLY
Meanwhile, the price of corn appeared to increase a bit in January after declining through the end of December.
A kilogram of corn cost KPW 2,700 in Pyongyang’s markets as of Jan. 9.
The price of corn climbed to KPW 3,200 by the end of November and fell to KPW 2,630 by the end of December, but it inched upwards again this month.
Over the last three years, the price of corn in Pyongyang in early January was KPW 2,200 on Jan. 11, 2022; KPW 2,300 on Jan. 11, 2021; and KPW 1,200 on Jan. 1, 2020.
Compared to 2020, when the price was the lowest, the current corn price represents a 125% increase.
At markets in Sinuiju and Hyesan, a kilogram of rice cost KPW 2,700 and KPW 2,950, respectively, as of Jan. 9, an increase of KPW 100 to 150 from the end of last month.
Government agencies usually get first dibs on grain produced by North Korea’s collective farms, with the remainder sold wholesale to markets.
However, with only a small amount of grain currently available for wholesale, market grain prices will likely increase going forward.
A Daily NK source in North Hamgyong Province said market rice merchants have little rice in stock.
“I’m worried that we’ll see a rise in the price of rice if there isn’t enough stock on hand,” he said.
Translated by David Black. Edited by Robert Lauler.
Please direct any comments or questions about this article to dailynkenglish@uni-media.net.
