In a dramatic change from the normal way

of things, domestic rice is currently on sale in North Korea’s official public markets for less than the Chinese competition, sources have revealed to Daily NK. Domestically produced rice normally trades in markets for 500

to 1000 won more than Chinese rice, but the supply of domestic rice has increased and the reverse state of affairs has come to pass.

A source from North Hamkyung Province told

Daily NK on the 30th, “I went to market yesterday, and was surprised

to find that Chosun [North Korean] rice was about 300 won cheaper than the

Chinese stuff. Normally Chinese rice is the cheap one and Chosun rice is more expensive,

so there were people there stocking up. Perhaps they thought it was a good

opportunity.”

“The difference between Chosun and Chinese

rice is normally between 500 and a thousand won. But now it is the reverse, and

people like the fact that Chosun rice is being sold for less,” the source added. “People are surprised

by it, and are saying that this year’s farming must have actually gone

really well. They hope that normal [food] distribution will happen in

January.”

“The reason why Chosun rice is ordinarily more

expensive is because it is stickier and more delicious than Chinese rice,” the source alleged. “But the

price has gone down anyway because demand has not risen while more rice has come onto

the market. Because people are currently holding rice, it looks as if the number of

people buying it will keep falling. It won’t only be the Chosun rice that gets

cheaper; Chinese rice will fall as well.”

The source went on to explain that at the beginning of 2013 rice was hovering

at around 6000 won per kilo in North Korea, but then fell in spring as wartime rice reserves entered

public distribution channels. The current price, around 4500 won, compares

extremely favorably with the mourning period for Kim Jong Il last year when it

was closer to 7000 won.

The main factor influencing domestically produced rice pricing is annual grain production. In the case of this year, a lot of

rice has been distributed compared with previous years, all backed by a good harvest. The reaction of market participants

has also had an effect on prices: word has started to spread that normal rations

will be given in January, leading market traders to put their stocks of rice on sale and driving down prices.

Sources testify that this is causing

concern for grain vendors, because if distribution does indeed stay as normal early

next year, rice prices will fall further. If sales fall or even halt, they will

be hit with significant losses. The possibility of a small profit now appears much more

appealing than substantial losses later.