“Supply food at the national price”… North Korea spirals out of control of self-rehabilitation enterprises

A view of a factory in the border area of ​​North Pyongan Province, North Korea, as seen from Dandong, Liaoning Province, China. /Photo = Daily NK

It is known that North Korea handed out directives to ‘supply food at state-set prices’ to enterprises that are supplying food on their own, and began to supervise their execution.

A Daily NK North Korean source said on the 23rd, “The cabinet’s non-standing Economic Development Committee cooperates with the National Planning Commission to say that units that supply food to their employees on their own must sell food only at the price set by the state, and that this will be thoroughly supervised. issued a joint directive.”

According to the source, the joint directive stipulates that ‘when self-supplying food to employees, it cannot be sold at a lower price (cheaper) than the price set by the local People’s Committee’s commercial department for each season.’

The target of application of the joint directive of the State Planning Commission with the non-permanent Economic Development Committee, which is a task force in the North Korean economy, are units that have supplied food to employees on their own since the 1990s, and the state is responsible for all the supply. , it was reported that military specific units were not included.

In North Korea, as the national distribution system collapsed during the Arduous March in the 1990s, whether businesses produced foreign currency other than the national plan and earned foreign currency, the August 3rd Earnings (paying a certain amount to institutions and enterprises to engage in informal economic activities elsewhere) ) has been used to provide food to employees on its own.

Until now, it was not a problem for so-called ‘self-rehabilitating’ enterprises to set their supply prices on their own, but this time, the source explained that they are putting the brakes on them to prevent them from supplying them at a lower price than the state price.

The source said, “According to this joint directive, from January next year, units that supply food to their employees will not be able to set their own prices.”

Furthermore, it is said that the cabinet announced in this joint directive that it would thoroughly supervise all aspects of the food supply preparation project by unit, preparation of necessary quantities, supply system, and reporting system through the People’s Committee.

The source said, “The cabinet is emphasizing that the supervision project for the execution of this joint directive is aimed at normalizing the planned price system and resolving and correcting the severe disorderly conduct of prices by independent enterprises and units.”

However, it is known that there are also voices from insiders saying, “The principle of national price is good, but the supply price should be allowed to be adjusted according to the situation of food supply and demand by unit.”

Regarding this, the source said, “When you were supposed to make a living on your own, why is the state involved in the price of grains purchased from farms or received in foreign currency? In the end, there is a bad reputation that it is only the employees who melt (lose).”


Source: DailyNK by www.dailynk.com.

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