North Korean food prices soared again, breaking an all-time high. Internally, it is understood that the number of residents experiencing financial difficulties has increased significantly due to rising prices.
According to the North Korean market price survey conducted regularly by Daily NK, as of the 24th, the market price of rice in major North Korean cities all exceeded 8,000 won.
In fact, the price of 1 kg of rice in the markets of Pyongyang, Sinuiju, North Pyongan Province, and Hyesan, Yanggang Province was 8,000 won, 8,100 won, and 8,200 won in North Korean currency, respectively, up 6.7%, 7.3%, and 6.5%, respectively, from the survey on the 10th, two weeks ago.
This corresponds to the highest price since 2009, when Dong-A Ilbo began investigating prices in the North Korean market.
The price of rice in the North Korean market rose to the 7,000 won range on the 27th of last month, a month ago, and remained there for about a month, but this time the price soared again, exceeding the 8,000 won range.
Meanwhile, the price of corn, a staple food for North Korea’s low-income class, was found to have risen much more significantly than rice.
On the 24th, at a market in Hyesan, 1 kg of corn was traded at 4,100 North Korean won, the highest ever transaction price. It is a 17.1% increase from the 10th, two weeks ago.
This is the first time since the end of June 2021 that the price of corn in the Hyesan market has exceeded the 4,000 won range. At the time, a local blockade was implemented as suspected coronavirus trends appeared in Ryanggang Province, and as a result, the prices of rice and corn in the Hyesan market unusually rose nearly twice as much as those in other regions. As grain distribution normalized after the blockade, prices fell to a level similar to other regions.
On the 24th, in a market in Sinuiju, 1kg of corn was traded at 4,000 won, up 17.6% from the previous survey. This is the first time that the price of corn in the Sinuiju market exceeded 4,000 won.
As grain prices soared in the North Korean market, the current price of rice is 63.9% higher than the price at the beginning of this year, and corn price is 70.7% higher. It is difficult to find an example of such a large difference between the price at the beginning of the year and the price at the end of fall harvest.
In previous years, market grain prices tended to fall somewhat at the end of the fall harvest, so the surge in grain prices in the current season is considered unusual.
The skyrocketing price of grains in the North Korean market is due to a decrease in the supply entering the market as state agencies such as grain stores preempt the purchase of rice after the harvest is completed, and the exchange rate has risen significantly, making it difficult to purchase food such as rice or corn in the North Korean market with dollars or yuan. It is analyzed that this phenomenon is worsening.
According to multiple internal sources, as the value of the dollar or yuan rises in the North Korean market and the value of North Korea’s domestic currency falls, the number of merchants unwilling to accept North Korean money in the market is increasing significantly. (See related article: (North Korea exchange rate shock) After the exchange rate rise, more residents use foreign currency in the market)
As the foreign currency exchange rate rises rapidly, merchants are reportedly refusing to pay in domestic currency because they do not have change, and selling products at a higher price than the current exchange rate when accepting domestic currency. As merchants are reluctant to pay for refractory products, the prices of domestic agricultural products that were previously sold only with refractory products appear to be rising rapidly.
Moreover, as the value of North Korea’s domestic currency declines, it is said that when exchanging currency, there is even a phenomenon of exchanging physical goods such as rice for foreign currency instead of exchanging North Korea’s domestic currency for dollars or yuan. As a result, it is understood that the grain shortage is worsening.
Jo Choong-hee, director of the Good Farmers Research Institute and a North Korean agriculture expert, said in a phone call with Dong-A Ilbo, “As the value of refractory currency has decreased due to the rise in the exchange rate, there is a phenomenon of people preferring cash such as rice and corn over North Korean money.” He added, “Demand for grains has increased, but spot supplies are insufficient. “As the price decreases, grain prices continue to rise,” he said.
He predicted, “The current surge in grain prices in the North Korean market is related to the decline in the value of refractory currency and the rise in exchange rates, so even if farming is good this year and agricultural production increases slightly, it will be difficult to have a significant impact on stabilizing food prices.” .
Source: www.dailynk.com
