Spring, traditionally the hardest season to get through for North Korean residents, has almost passed. North Korean defectors tell us that by this time of the year, the people wish that the weather
to be warmer so they can dig out spring greens. The falling prices of
commodities should at least relieve them of some worry, and reporter Kang Mi Jin is here to tell us more about it.
1. Even though this is the spring lean
season, the price of rice in most major markets of North Korea has reportedly
stabilized. Usually at this time, the price of rice is very unstable, so what
are the latest trends in rice prices?
Yes. Reports say that the rice prices of
major markets have remained relatively stable just as last month. For example,
the price of rice at Hyesan has fallen by 500-600 KPW since last month, and is
staying around mid-4000 range. Falling prices of rice can only be good news for the
residents.
The reason for the stable prices is the
influx of rice from Russia as part of an aid package, as well as from trade
with China. Although there are slight differences in the prices between the
three major markets, the price of rice has stayed in the 4000 range for the
most part.
As a matter of course, North Korean residents are very
sensitive to the market fluctuations because they must make the most out of meager
funds. The lower prices benefits everyone because they allows more savings, and
the vendors can make more sales.
2. Even though it’s the lean season, the
price of potatoes has been falling. Can you explain why?
Reports from inside North Korea tell us that many
families open their store of potatoes in early spring. They sell the potatoes
in order to buy other seeds, or salt, or seaweed. As a result, the market is
saturated with potatoes more than usual. Naturally, buyers will buy more
potatoes, which is cheaper, and this change in buying patterns stops rice
prices from rising.
When I lived in North Korea, I also ate potato rice
very frequently. Cooking potatoes with rice results in using less rice and is quite good. Moreover, health wasn’t a main consideration for most
residents, but there’s a popular impression that potato is very healthful food.
As a result, Party cadres often eat potatoes as a side dish. There’s obviously
a distinction between the Party members who eat potatoes because it’s
delicious, and most residents who eat it to save rice.
3. Recent reports also suggest that soybean
oil from Russia has lowered the price of soybean oil at the markets in North Korea.
There are indeed reports that say the inflow
of soybean oil into North Korea has stabilized its price. The residents believe that
this inflow is unconnected with the recent improvements in Russo-North Korean
ties. The inflow comes on the heels of recent reports that the fall in prices
was caused by inflow of counterfeit soybean oil from China. Whether Russian
soybean oil has indeed reached North Korean markets is still unconfirmed, and requires
additional verification. Nonetheless, the fact that the prices are falling is
evidence of a large inflow from outside the North. This is good news for the residents
who cannot easily eat meat or other nutritious foods.
4. Since it’s spring, a lot of spring
greens have probably sprouted. Is it safe to say that these greens have also
contributed to stable food prices?
Yes. Reports from Hyesan and other
marketplaces in Yangkang Province say that the price of eggs and vegetables
keep falling. Spinach has become very popular, so much so that even city
residents will grow their own plants in small kitchen garden plots. If the
seeds are sown in fall, then the leaves will be ready to eat by now. After the
plants reach maturity, they can be uprooted and a second spinach crop can be
planted, so that it can be eaten continually into May and June.
Residents in the North refer to vegetables as
half-year provisions, and are essential in their diets. Having vegetable side
dishes means that less rice has to be cooked.
Sources say that the North Korean people constantly
think about ways in which they can get through the spring lean period with less
worrying. Some households reportedly build greenhouses and cultivate plants in
the cold spring, which suggests that North Korea’s agriculture system is coming to increasingly
resemble the all-season, year-round agriculture present in South Korea.
5. Is it correct to say that fluctuating
currency exchange values also affect the price of rice?
Yes. Historically, rising foreign currency
has caused a corresponding increase in rice prices, and the same goes for
decreases in foreign currency. Currently, foreign currency has remained very
stable as the fluctuations have been very minimal, and the price of rice has
accordingly remained very stable.
Currently, the going market rate for
currency exchange for the past month has stayed in the range of 8100-8400 KPW.
As mentioned, currency exchange rates and rice prices are very closely linked,
so that the residents for now have little worry about sudden upswings in rice
prices.
6. The stability in rice prices has been
attributed by some to an influx of rice and soybean oil from Russia. What are
your thoughts?
Internal reports from North Korea state that a large
amount of rice from Russia has entered North Korea since last month. Because a fall in
rice prices leads to falling prices for other food commodities, the current
stability in rice prices has stabilized the price of other foods as well. If
significant amounts of major food commodities of rice and soybean oil are
flowing into North Korea, then, there is a good chance that it will flow into the
markets. Even if the state freezes the commodities, they will either be
distributed or disseminated by Party members, and ultimately find their way
into the markets. North Korea’s market has become liberalized to the degree that it is
now sensitive to changes in the wider world market.
Vendors are also responding to the reports
of influx of foreign commodities by selling their reserves at low prices before
the prices fall even further. The widespread stability in commodity prices can
indeed be attributed to the influx of goods from Russia.
7. Most residents will obviously be happy
if the low price of rice remains stable, but probably more so for women who are
responsible for their family’s livelihood. What are your thoughts?
You are right in saying that those women
will appreciate the stability in prices even more. The obvious benefit is that
they can manage the household with less money, and can make budgets that are
far more certain.
The rice vendors will reap the benefits of
low prices as well, because they can increase their profits by buying rice at
low prices. Hence, both vendors and buyers will benefit through low and stable
prices. Most South Koreans think little of spending 5000-6000 KRW on a
single meal, which equates to 5-6 USD. Since 1 USD is worth 8000 KPW, the
price of a single meal in KRW would be about 40,000 to 48,000 KPW. But North Korean residents spend the majority of their day, from morning to evening, hectically
trying to earn few thousand KPW each day.
The stability in prices of rice as well as
other produce for side dishes has alleviated one concern of wives according to
reports. Although North Korea remains a patriarchal society, the role of women in the
family has grown after the Arduous March in the last 90s. It is sometimes said
that if the women (in the family) are worried, then the entire family is
worried–a statement reflecting the imperative role women play in the family.
Therefore, it would not be amiss to say that the low, stable prices of food
commodities has contributed to the happiness of many families.
