Grain prices in North Korean markets have fallen across the board. According to a regular market price survey conducted by Daily NK, as of July 21, rice was trading at KPW 5,730, KPW 5,740, and KPW 6,300 per kilogram in markets in Pyongyang, Sinuiju (North Pyongan Province), and Hyesan (Yanggang Province) respectively. These prices represent a more than 3% decrease in all three regions compared to the previous survey.
Pyongyang’s rice price fell 3.4% from KPW 5,930 two weeks earlier, with Sinuiju showing a similar decrease. Hyesan experienced the largest drop, with rice prices falling 6% from KPW 6,700 in the previous survey.
Corn prices show significant decline
The survey revealed a notable decrease in corn prices across North Korean markets. In Pyongyang, corn was trading at KPW 2,500 per kilogram on July 21, a 19.4% decrease from KPW 3,100 two weeks earlier. Sinuiju and Hyesan markets also saw significant drops in corn prices, though not as steep as Pyongyang’s.
This marks the first time since October last year that corn prices in North Korean markets have fallen so sharply. The introduction of alternative grains like wheat, barley, and potatoes to the market, along with imported grains from China, are seen as the primary reasons for this decline.
Factors influencing price drops
Cho Chung-hee, director of the Good Farmers Research Institute and a North Korean agriculture expert, attributed the price drops to the availability of alternative grains in the market since early July. He noted that wheat production has increased somewhat this year, leading to a higher volume of alternative grains in the market compared to previous years.
Following Kim Jong Un’s 2021 announcement to shift the people’s dietary culture towards white rice and wheat-based foods, authorities have expanded wheat and barley cultivation areas. In the Pyongan area, the space dedicated to wheat and barley cultivation has increased from 1.7% to about 10% of total agricultural land.
Rodong Sinmun recently promoted a “wheat bumper crop” in South Hwanghae Province, predicting a grain yield increase of more than 1.5% per jongbo (approximately one hectare) compared to last year.
As of July 21, flour was trading at KPW 10,000 per kilogram in a Pyongyang market, a 13% decrease from two weeks earlier. However, this price drop is largely attributed to the import of Russian flour rather than domestically produced wheat flour.
Daily NK works with a network of sources living in North Korea, China, and elsewhere. Their identities remain anonymous for security reasons.
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