North Korea’s climbing grain prices have fallen slightly following the government’s prompt measures in response to a kilogram of rice selling for as much as KPW 6,000 and a kilogram of corn for KPW 3,000.
According to Daily NK’s regular survey of North Korean market prices, a kilogram of rice was selling for KPW 5,500 in one Pyongyang market as of June 11. This represents a 3.5% decrease compared to the price of KPW 5,700 on May 29.
Rice prices in Sinuiju, North Pyongan Province, have also fallen somewhat. A kilogram of rice was selling for KPW 5,700 in Sinuiju markets on June 11, representing a 1.7% decrease compared to the price of KPW 5,800 on May 29.
The sale of rice and corn in state-run grain shops appears to have led to a slight decrease in rice prices compared to last month.
According to a Daily NK source in North Korea, the authorities recently sold grain through state-run grain shops in Pyongyang, Nampo, North Pyongan Province, and South Hamgyong Province. Some state-run shops distributed long-grain, indica rice.
Despite North Korean rice prices decreasing fairly steadily at the moment, rice prices in early to mid-June of this year are nonetheless still the highest they have ever been at this time of the year when comparing prices recorded over the last five years.
The average price of rice in Pyongyang, Sinuiju, and Hyesan as of June 11 was KPW 5,733, representing a 25% increase from the average of KPW 4,593 on June 11 of 2019, before the COVID-19 pandemic.
Even last year, when rice prices reached their peak during the COVID-19 border lockdown period, the average rice price in major cities in early to mid-June were lower than now, at just KPW 5,406.
Corn prices also at a record high for this time of year
Corn prices are also the highest they have ever been during early to mid-June over the last five years.
On June 12, 2019, a kilogram of corn in Pyongyang, Sinuiju, and Hyesan sold for an average of KPW 1,483. On June 11 of this year, however, corn prices in major markets in the country were 98% higher, at KPW 2,933.
The current price of corn is 2.7% higher than even the average corn price of KPW 2,827 in early to mid-June of last year, when the volume of trade declined due to the border shutdown.
In Sinuiju and Hyesan markets, a kilogram of corn is being sold at around KPW 3,000.
A kilogram of corn was sold at KPW 3,000 in a Sinuiju market on June 11. This marked a 3.2% decrease from the price of KPW 3,100 on May 29, but the price still remained above KPW 3,000.
In Hyesan, on the other hand, the price of corn is 3.3% higher than last month, selling for KPW 3,100.
North Korea has been expanding its grain imports since the end of 2022, but grain prices have not yet shown a significant decrease.
According to Voice of America (VOA), North Korea imported USD 67.23 million worth of rice from China in the six months between October 2022 to March of this year. This is around three times higher than the USD 22.6 million worth of imports recorded in 2018.
The reason increases in grain imports have not led to a fall in grain prices is due to low domestic production of grain and delays in distributing imported grains.
“North Korea appears to have expanded grain imports to supplement inadequate production rates, but it is unclear which North Korean agency imported the grain,” said Choi Ji-young, a researcher at the Korea Institute for National Unification. “Depending on which agency organized the imports, the authorities may have given the grain to places other than markets, or they may be experiencing delays in distributing the imported grain to markets.”
Translated by Annie Eun Jung Kim. Edited by Robert Lauler.
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