By Benjamin Katzeff Silberstein
A recent report by Radio Free Asia/Asia Press (and recapped below by Yonhap) claimed that food prices had doubled in northern North Korea as a result of the floods last month:
Food prices in North Korea’s northeastern region, which has been hit by devastating floods, have doubled due to the slow pace of recovery and poor distribution networks, U.S.-based media Radio Free Asia (RFA) reported Thursday.
Citing a report by Japanese media outlet Asia Press, the RFA said the country’s northern cities of Hoeryong and Namyang are experiencing a spike in rice and corn prices which soared to 8,000 won (US$7.24) and 2,000 won per kilogram, respectively, from 4,300 won and 1,000 won before the worst-ever floods in decades. The flooding caused severe property damage with many people being reported dead or missing.
The Japanese media said there is a likelihood that other commodity prices will likely soar following rice.
Jiro Ishimaru, who heads the Osaka office of Japan’s Asia Press, told the RFA that rice prices rose rapidly as the transportation situation in the flood-damaged area is very serious, with the railroads and overland routes being almost blocked. The official said the lack of transportation means is leading to poor distribution of food and commodities.
Ishimaru, in addition, warned that water shortage and sanitary problems will also follow due to a shortage of personnel equipment needed to speed up recovery.
Full article here:
Food prices in N. Korea’s flood damaged area doubles: report
According to DailyNK, the government has therefore started implementing price controls to keep the market prices for food from skyrocketing:
북한 당국이 ‘60년 만의 대재앙’ 수해 피해를 입은 함경북도 지역의 물가 안정을 위해 총력을 기울이고 있는 것으로 전해졌다. 인민보안성(경찰) 인력을 동원해 쌀 사재기와 가격 인상을 통제하면서 내부 안정화를 꾀하고 있다고 소식통이 알려왔다.
함경북도 소식통은 27일 데일리NK와의 통화에서 “현재 쌀 가격 등이 큰물 피해 이전과 거의 차이가 없다”면서 “보안원과 순찰대가 출동해서 쌀 사재기 및 가격을 올리는 행위 등을 강력하게 막았다”고 전했다.
소식통은 이어 “(수해가 일어나고 얼마 되지 않아) 어떤 장사꾼은 1킬로(kg)에 5000원, 5300원하던 쌀을 8000원에 팔려고 하기도 했다”면서 “하지만 보안원들의 통제 때문에 눈치만 보다가 그렇게 하지 못했다”고 설명했다.
그러면서 소식통은 “회령시의 경우 한때는 쌀 가격이 6000원까지 폭등하기는 했으나 지금은 5000원 대로 하락했다”면서 “돼지고기 가격도 1kg에 13000원 등 원래 가격과 같다. 물가가 전반적으로 차분하다(안정돼 있다)”고 덧붙였다.
North Korea making efforts for price stability in flood damaged areas…”Don’t raise rice prices”
Yonhap offers a summary of the article in English:
North Korea is going all out in blocking the cornering and the skyrocketing of rice prices in its flood-devastated northeastern areas, a Seoul-based news outlet specializing in the North reported Wednesday.
This summer, six areas in North Hamkyong Province in the North were devastated by heavy rains accompanied by Typhoon Lionrock, with the United Nations having estimated that 138 North Koreans were killed and 400 others are missing by the floods, with about 20,000 houses destroyed.
“Security agents and patrolmen are strongly cracking down on activities of cornering rice and raising rice prices (in flooded areas),” the Daily NK quoted a source from the North’s North Hamkyong Province as saying.
Therefore, there’s no big difference in rice price before and after the worst-ever flood hit the region, the source said.
“A merchant was trying to sell 1 kilogram of rice at 8,000 won shortly after heavy rains flooded the area, but was unable to do so due to strict control by security agents,” the source said.
Rice price once soared to 6,000 won from 5,000 won per kilogram before the floods, and now remains at the 5,000 won level, according to the source, adding that pork prices also showed no noticeable change, selling at 13,000 won per kilogram as before.
“Prices in the deluged areas are stable, in general,” the source said.
N.K. strongly controls prices in flood-stricken areas
Several things are worth noting here. First, historically, it is common for food prices to rise as a result of seasonal flooding in North Korea. After the severe floods in 2012, rice prices shot up from 4866 won/kg in July to 6533 won/kg in late September. Second, the rise in prices reported by RFA/Asia Press might have been a temporary shock. The DailyNK price graph, last updated in early September, shows very moderate increases in prices after the floods hit in late August. Perhaps prices stabilized quickly as supply did (i.e., deliveries coming in from other areas; this is only speculative though). Third, price controls are difficult to maintain under pressure. Had there been a massive pressure for prices to go up due to drastically decreased supply, it is hard to see that the government would have been able to effectively keep market prices at a certain level across the board. I will try to keep this post continuously updated as market price information gets updated.