Rice prices in North Korea rise to new highs in September

North Korean food prices are rising, with rice in Pyongyang reaching 6,300 North Korean won per kilogram on September 15. This is the highest rice price since early October 2023.

Rice prices in other areas have risen to levels similar to those in Pyongyang. On September 15, a kilogram of rice sold for 6,400 won at a market in Sinuiju, North Pyongan Province, and for 6,580 won at a market in Hyesan, Ryanggang Province. In Hyesan, the rice price has been above 6,000 won since the end of March.

In mid-September, the price of rice on the North Korean markets was at a record high.

The average price of rice in Pyongyang, Sinuiju and Hyesan is currently 6,426 won. This is 83 won higher than the average of 6,343 won in mid-September 2023, which itself was higher than the average of previous years.

Meanwhile, the price of corn on marketplaces is also rising. A kilogram of corn was sold at a market in Pyongyang on September 15 for 3,200 won, an increase of 6.7 percent (200 won) from the price at the beginning of the month on September 2.

The price of corn in Sinuiju and Hyesan increased by a similar amount. The survey found that corn cost 3,300 won in Sinuiju and 3,310 won in Hyesan on the same day.

Normally, the price of food in North Korea continues to rise until early October, when that year’s corn crop begins to reach markets. But the current price of food in North Korean markets is already at the same level as last year.

The main reason that food prices continue to rise in North Korean markets appears to be that less rice and corn are supplied to the markets. This in turn is due to a combination of factors: a shortage of domestically produced food and less food imported from abroad.

“The current increase in food prices in North Korean markets is related to supply shortages and rising exchange rates. The unprecedentedly high exchange rates may be the cause of the reduced food imports,” said Cho Chung-hee, director of the Good Farmers research institute and an expert on North Korean agriculture.

Selling large amounts of imported grain on the market can reduce food prices, but the current amount of imported goods does not seem to be enough to have much impact, Cho explained.

According to a Voice of America report in late July, which cited Chinese customs officials, the value of North Korea’s rice imports from China in the first half of the year was just one-tenth of the value for the same period in 2023.

Although North Korean authorities operate grain warehouses in every region, these warehouses are not supplied with sufficient grain, and the gap between their prices and market prices is widening. As a result, state-run grain warehouses do not appear to help stabilize food prices.

“When the state-owned grain stores were first established, they sold rice and corn for 20 to 30 percent less than market prices, but now the state-owned stores are often only 300 won (per kilogram) cheaper than market prices,” Cho said. “Many North Koreans are also put off by the poor quality of products in state-owned stores. Such factors also underlie the price increase in North Korean markets.”

This article first appeared in Daily NK, who contacts multiple sources inside and outside North Korea to verify information. The diplomat could not independently verify the claims.