North Korean grain prices continue to trend upward. Although grain prices are high during the season, the current grain price is understood to be much higher compared to this time of year.
According to the North Korean market price survey conducted regularly by Daily NK, as of the 10th, 1kg of rice was traded at 7,700 North Korean won at a market in Hyesan, Ryanggang Province. Compared to the price of rice at Hyesan Market, which was 7,000 won on the 27th of last month, two weeks ago, it has risen by 10%.
This is the first time since the currency reform in 2009 that the price of rice in the North Korean market has risen to 7,700 won.
In the case of rice prices in Pyongyang and Sinuiju markets in North Pyongan Province, the increase was not as large as in Hyesan, but it still appears to be trending upward, exceeding the mid-7,000 won range and continuing to trend upward.
On the 10th, in markets in Pyongyang and Sinuiju, 1kg of rice was traded at 7,500 won and 7,550 won in North Korean currency, respectively, up 1.4% and 2.7% from the survey two weeks ago.
As rice prices rise, the current average rice price in North Korea is 1.48 times higher than in mid-November last year and 1.26 times higher than in mid-November the year before.
The price of corn in the market also rose significantly. The area where corn prices rose the most was Sinuiju. On the 10th, at a market in Sinuiju, 1kg of corn was traded at 3,400 North Korean won, up 13.3% from two weeks ago.
In Hyesan, corn prices also rose 9.4% compared to the previous survey, trading at 3,500 won per kg.
The reasons behind the rising grain prices in the North Korean market as of mid-November include the fact that last year’s grain reserves were running low, and the possibility that grain imports are decreasing due to the recent surge in dollar and yuan exchange rates.
Meanwhile, as foreign currency exchange rates have recently risen significantly in North Korea, overall prices are understood to have risen significantly compared to the beginning of this year.
Based on Pyongyang’s price survey, the current price of rice has increased by 55.6% and the price of corn has increased by 41.6% compared to the survey on January 7th.
The prices of gasoline and diesel, which are representative imported goods, also rose by 50.4% and 54.0%, respectively, compared to the beginning of this year, while cooking oil, which is an imported food, rose by 56.7% and sugar by 60%.
However, among imported goods, the price increase rate of flour was found to be particularly low. In fact, on the 10th, at a market in Pyongyang, 1 kg of flour was traded at 8,500 won, up 4.9% from the price in January.
The price of flour in the North Korean market soared to 11,700 won per kg between March and July last year, but began to stabilize in August and is currently maintained in the low to mid 8,000 won range.
The reason why the rate of increase in flour prices in North Korea is not as high as that of other goods is believed to be due to a slightly higher wheat production as the authorities expanded wheat farming and supply from Russia, the world’s largest wheat exporter.
Previously, North Korean media, including the Workers’ Party’s official newspaper, Rodong Sinmun, advertised that this year’s wheat crop had achieved an “unprecedented bumper harvest.” However, the amount of wheat produced in North Korea is not large enough to drive the decline in flour prices in the market, and since March, when flour prices began to fall in the North Korean market, is not the seasonal wheat harvest time, the decline in flour prices in the market is due to the increase in imports. The resulting impact appears to be major.
Source: www.dailynk.com
