Sources in North Korea report that despite last year’s
disappointing rice harvest, the market price of rice has continued to remain
stable. Unlike previous years, where prices of items such as rice spiked just
before the holidays, cost of the staple food saw minor fluctuations around the 5,000 KPW [0.63 USD] mark but were overall stable across the country right up to the 2015 Lunar New Year.
Analysis of source reports revealed that
although most families purchase goods in the months leading up to and after
January 1st and February 16th [Kim Jong Il’s birthday], costs have remained relatively unwavering. Notwithstanding marginal differences that emerged
regionally, overall market prices have been keeping with normal levels.
In particular, despite curtailed market
activity due to the mobilization of residents for compost collection, the
state’s “first call to battle” in 2015, there have been little to no
changes in market prices. Sources determined that the galvanization and expansion of market activity compared to years prior has seen prices no longer affected by short-term constraints.
“It was normal for the cost of rice to
increase every year just before the holidays from 500 KPW [0.06 USD] to even 1000 KPW [0.13 USD],” a
source in Yangkang Province told the Daily NK. “Despite the recent back-to-back
occurrence of Kim Jong Il’s birthday and the Lunar New Year, the cost of rice has
hovered at 5,000 KPW per kilogram with no noticeable
fluctuations in the price of other goods.”
According to the source, since the end of last
year to the present, the cost of 1kg of rice has risen or dropped approximately 500
KPW at times, but has shown no trends of instability, such as increases due to approaching
national holidays or decreases due to distribution of rations.
“It’s common for the cost of rice to start
increasing from the end of December, when parties for the end the of the year
occur all over the country. This generally continues through the Solar New Year [January 1st], February 16th [Kim Jong Il’s birthday], and the
Lunar New Year, but it didn’t this year,” he said, adding that even sharp jumps in prices typically emerging a day or two ahead of the holidays in the past have been absent this year.
He offered two theories to explain the stable rice prices. “Despite the drought last year, crop
harvests in beolbangs [towns with expansive fields and rice paddies] were
relatively good,” he said, outlining his first hypothesis. He asserted the other contributing factor to be the 50,000 tons of food aid in rice provided from Russia last
year.
According to Daily NK’s sources within the North, supply routes for
goods in North Korean markets such as rice, industrial products, and side
dishes have diversified compared to years past. This surge in the quantity of goods has made stable market distribution and consistent prices possible. In fact, not only have distribution systems expanded beyond the high
dependence on Chinese imports and smuggling, market distribution is smoothly
extending to other means, namely an autonomous national cottage industry and a growing manufacturing sector run by the emerging wealth class.
The state’s role in dispensing of rations has also contributed significantly to the stability of market prices. North Korea has commenced the allotment of regular rations for Pyongyang residents, and last
March and April potato rations were distributed in Yangkang Province. In addition, rations released to the Musan and Hyesan mines are also likely playing a part in the overall stability of rice prices.
Still, some predict that the rice prices may increase in early April, the start of
the “farming hardship period.” Many speculate that the cost will be heavily affected if demand for rice increases before and after the hardship
season and the state fails to continue with the relatively stable distribution of rations to the aforementioned areas.
