◆ Who Decides Food Prices?
Food prices at grain sales stations are decided by the Food Administration Bureau and the Price Bureau of the People's Committee (local government). Typically, a profit margin of around 15 to 20 percent is added to the aforementioned purchase price to set the sale price. This has drawn constant criticism from people that "the state is running a food business."
However, even though state institutions decide the buying and selling prices of food, the reality is that prices are heavily affected by external factors and continue to surge.
"Under the 'unified pricing system,' sale prices used to be set once stock was secured at the autumn harvest, but now prices are adjusted while monitoring imported food and the stock held by farms. Because the foreign exchange rate fluctuates so much, prices at the grain sales stations change every two days."
Several reporting partners explained it this way. Even under the state's powerful food management system, there is no way to avoid the effects of the North Korean won's depreciation or sharp rises in international oil prices.
◆ Large Inflows of Russian Flour
"Since around February of this year, large quantities of Russian food and food products have begun circulating."
This was a common account from reporting partners in various regions. Large quantities of Russian wheat and flour have begun to be sold at grain sales stations, and people reportedly praise them for their good quality and low prices.
In addition, Russian soybeans, soybean oil, and pork are being sold at state-run stores. Pork in particular is said to be well regarded as "clean," since the pigs are raised on feed rather than fed human waste or food scraps.
There is a possibility that the Russian food is compensation for the troops and weapons North Korea provided for Russia's war of aggression against Ukraine, and some people reportedly view it as "compensation paid for lives given." However, there is no information whatsoever that the North Korean government has supplied this food to people free of charge — it is sold to people at the grain sales stations. Reporting partners commonly note that it is not sold in markets and there is no trading of it between individuals either. This, too, can be seen as part of the "state's food business."
◆ Chinese Food Losing Favor
Meanwhile, the reputation of Chinese food products is worsening. Partly due to North Korea's own intent to secure "quantity," Chinese food has long tended to be of low quality — old rice, corn meant for animal feed, and the like. On top of that, there is a widespread perception that Chinese products contain many chemical additives, and many people reportedly avoid or dislike them.
One reporting partner said, "Since they keep sending us low-quality goods, there's anti-Chinese sentiment from feeling like we've been treated as livestock."
The next installment will report on the sale prices at grain sales stations as surveyed in May and June.
※ASIAPRESS communicates with its reporting partners through Chinese cell phones smuggled into North Korea.
■［List of Series］North Korea's Economy Seen Through a Large-Scale Price Survey
