The North Korean authorities have been distributing food from state-run grain stores, which appears to have driven down the market price of grain, Daily NK has learned.
Daily NK’s regular survey of grain prices in North Korean markets showed that a kilogram of rice sold KPW for 4,900 at a market in Pyongyang on Mar. 4. Rice sold for KPW 5,000 on Feb. 18, so this represents a decline of 2% over the past two weeks.
The market price of rice in other cities has dropped by a similar amount. In a marketplace in Sinuiju, North Pyongan Province, rice was sold for KPW 5,000 per kilogram, down 2% from the price of KPW 5,100 in the previous survey.
The survey found that the price drop was more pronounced in a marketplace in Hyesan, Yanggang Province, than in other areas. On Mar. 4, a kilogram of rice sold for KPW 5,300, 3.6% lower than the price on Feb. 18 (KPW 5,500).
Corn distributions lead to drop in prices
The market price of corn also showed a general decline. A kilogram of corn sold for KPW 2,600 at a marketplace in Sinuiju on Mar. 4, down 3.7% from two weeks earlier. But a kilogram of corn at a marketplace in Hyesan on Mar. 4 sold for KPW 3,000, the same price as before.
The reason for the turnaround in grain prices at North Korean marketplaces is believed to be food sales at state-run stores. A source told Daily NK that grain was sold at official food stores toward the end of February.
The source, who is in Pyongyang, said that rice was not sold at the official stores in the capital, but corn was sold there for about KPW 400-500 cheaper than at nearby marketplaces.
In addition, several sources in North Korea confirmed that grain was sold at government stores in other areas around the same time.
Prices of imported food also falls
On a related point, the survey found that the overall price of imported food at North Korean marketplaces had declined slightly.
A kilogram of imported cooking oil sold for KPW 11,800 at a Pyongyang marketplace on Mar. 4, KPW 200 less than two weeks earlier (Feb. 18).
The price of sugar, an important imported food, has also dropped somewhat. A kilogram of sugar sold for KPW 8,700 in a Pyongyang marketplace on Mar. 4, KPW 300 less than on Feb. 18.
The price of imported wheat, however, has been rising. One kilogram of wheat sold for KPW 8,100 in a Pyongyang marketplace on Mar. 4, 1.25% higher than the price in the previous survey two weeks earlier.
The price of imported goods has continued to fall slightly since the end of last year because the North Korean authorities are expanding imports of food into the country.
Translated by David Carruth. Edited by Robert Lauler.
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