Market rice prices in North Korea have fallen slightly with the start of the fall harvest, but grain prices may not fall much further even after the harvest ends because of poor crop yields this year.
According to Daily NK’s regular survey of market prices in North Korea, the average price of a kilogram of rice in Pyongyang, Sinuiju and Hyesan was KPW 5,700 as of Oct. 3.
After spiking to over KPW 6,000 a kilogram in July and August, the price of rice has continued to fall since September.
The prices appear to be falling because substitute staples usually enter the market at the end of September, when farmers reap double cropped corn, wheat and barley.
The distribution of food by the authorities to the party, military and administrative agencies to mark Party Foundation Day on Oct. 10, and the subsequent appearance of some of that food on the market, also appears to have driven down prices.
However, among rice prices recorded in early October since the country closed its borders in January 2020, this year’s rice prices have been the highest.
The market prices of a kilogram of rice in North Korea in early October of 2020 was KPW 4,500 in Pyongyang, KPW 4,470 in Sinuiju and KPW 4,750 in Hyesan, the lowest they have been in the last three years. In early October of 2021, the prices climbed to KPW 5,000 and above, with a kilogram of rice costing KPW 5,000 in Pyongyang, KPW 5,000 in Sinuiju and KPW 5,500 in Hyesan.
The average price of rice across the three regions was KPW 4,570 and KPW 5,170 in early October of 2020 and 2021, respectively, lower than this year’s average price of KPW 5,700.
Corn prices have climbed even more dramatically than rice since the closure of the border.
The average price of a kilogram of corn across Pyongyang, Sinuiju and Hyesan was KPW 2,960 as of Oct. 3. Outside of Pyongyang, the price was still holding in the low KPW 3,000s in Sinuiju and Hyesan.
Compared to early October of 2020, when the average price of corn across the three regions was KPW 1,510, the average price has nearly doubled from two years ago.
Corn prices have not fallen much even after the end of the corn harvest because North Koreans — suffering weaker purchasing power amid North Korea’s prolonged economic difficulties — are buying more lower-priced corn than rice, and because North Korea’s agricultural policies have resulted in less acreage for corn than in past years.
Meanwhile, according to multiple sources in North Korea, farms where the fall harvest has begun are experiencing smaller yields than expected.
North Korea reportedly distributed unhusked rice to cadres in the Workers’ Party and military to mark Party Foundation Day. Essentially, they supplied unprocessed rice, which weighs more than processed rice.
Because 10 kilograms of unprocessed rice is about the same as seven kilograms of processed rice, the North Korean authorities were able to save about 30% of their diminishing rice supplies.
The source said the authorities typically distribute unprocessed rice during years with poor harvests.
“Rice merchants and people with financial means immediately began moving to secure rice since the start of the autumn harvest,” he added.
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