North Korean market rice prices have recently skyrocketed after holding steady since last November’s harvest. A nationwide campaign of soliciting donations of “patriotic rice” may have helped fuel the dramatic rise in market rice prices.
According to Daily NK’s regular survey of market prices in North Korea, a kilogram of rice in Pyongyang’s markets cost KPW 6,000 as of Feb. 19. On Feb. 5, it cost just KPW 5,200, meaning the price climbed 15% in just two weeks.
Thus, the price of rice in Pyongyang climbed about KPW 6,000 for the first time in three months, having held steady in the KPW 5,000 to 6,000 range since last November.
The price of rice climbed in other regions, too. The price of rice in Sinuiju and Hyesan climbed 9% and 5%, respectively, between Feb. 5 and Feb. 19.
Generally speaking, the price of rice in North Korea begins to fall after the harvest in late November and holds relatively stable through January before climbing slightly — around 5% — as January gives way to February. This trend may be related to demand for grain in preparation for major national holidays like the anniversary of the founding of the Korean People’s Army on Feb. 8 and late North Korean leader Kim Jong Il’s birthday on Feb. 16.
However, in early February of 2020 – immediately after North Korean authorities closed the country’s borders due to the COVID-19 pandemic – the price of rice surged 23% in Pyongyang and 45% in Hyesan compared to the period just prior to the border closure.
The recent spike in North Korean rice prices is smaller than the climb immediately following the border closure; however, the spike is much steeper that the usual increase in prices early in the new year.
On the other hand, the price of corn in North Korean markets has trended differently from region to region.
A kilogram of corn cost KPW 2,700 in Pyongyang as of Feb. 19, 6% less than it did on Feb. 5, when it cost KWP 2,900.
This means that while demand for rice has increased in Pyongyang, demand for corn has fallen.
In Sinuiju, a kilogram of corn cost KPW 3,000 as of Feb. 19, the same as it did earlier in the month. On the other hand, in Hyesan, the price of corn has climbed. A kilogram of corn in Hyesan’s markets cost KPW 3,300 as of Feb. 19, 6% more than it did on Feb. 5, when it cost just KPW 3,100. In Hyesan, the price of rice and corn both rose 5 to 6%.
SPIKE IN RICE PRICES MAY BE DUE TO PATRIOTIC RICE CAMPAIGN
The recent climb in market rice prices appears influenced by the country’s nationwide campaign for “patriotic rice” contributions and insufficient supplies at official grain shops.
Daily NK recently reported through a source in North Hamgyong Province that North Korea is asking all citizens to contribute at least 5 kilograms of “patriotic rice.”
There are price differences region to region, but since rice generally costs twice as much as corn, the North Korean government is treating 10 kilograms of corn as equal to five kilograms of rice when accepting donations. In fact, many North Koreans are donating whichever grain is cheaper in their areas of residence. As a result, rice prices have spiked sharply in Pyongyang and Sinuiju, where rice had been relatively cheap compared to corn.
Moreover, entering February, state-run food shops have sold only small amounts grain to consumers, which appears to have helped contribute to the spike in market grain prices.
Cho Chung-hee, director of Good Farmers and an expert on North Korean agriculture, told Daily NK that the amount of grain being provided to markets from after the harvest late last year until now is less than in previous years, adding that food sales through state-run food shops are irregular.
“A collapse in people’s expectations regarding the government’s new grain policies also appears to have had an impact on the rise of market grain prices,” he said.
Translated by David Black. Edited by Robert Lauler.
Please direct any comments or questions about this article to dailynkenglish@uni-media.net.
