CIA, Information Report — Control of Rice in North Korea

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Z CLASSIFICATION CONPIANTIAL 
7 ai Approved ForCRGRud DURIOUCRNCMEERELOOASTROBERERBACES | ‘ 9 
IMTELL Fax 4 INFORMATION REPORT op no. ov 


COUNTRY kerea ace DATE DISTE. 35 gyN 50 
SUBJECT control of Rice in North Kores.~ AFI DEN TIAL NO. OF PAGES Ja 2 


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ACQUIRED NO,DE ENC 
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NFO. 258 CORT NO. 


1, Gentrel of rice production and distribution in North Korea is entirely in the 
henda of the government and is strictiy enforced, Since the land reform, 
taxation in kind ameunting to approximately 450,000 tons of rice has boon 
collected from farmers. The tax rate for rice is 27 percent of the crop (as 
compared with 25 percent for other graing and similar rates fer wegetables}. 


2, At harvest time, all. members of parties and social. groups are mobilized and, 
under the direct supervision of local adainistrative authorities, carry out 
full collection of taxes in kind from farmers, regardless of the farmers’ 
individual ciroumstances. A system of joint responsibility fer each village 
unit ia adopted, and competition between village, termehip, ,and county groups 
is encouraged, with special awards te the firat unit to canplete ita sollec~ 
tien quota, Any corruplion is severely Punished, As a result, instanees of 
dishonesty abruptly decreased after the early scllecticus. , 


5. In addition to collecting rice for taxes, the government also purchases 
rice by means of a semi-compulsory system, Officials, party members, and 
social groups throughout North Korea are organized te encourage the sale of rice 
to the government, end to issue propaganda on the importance of rice in 
the national reconstruction program, The government also buys rice indirectly 
through consumers’ cooperatives in cities and counties. 


4, The sale of rice to the government is encouraged by fertilizer controls. 
Fertilizer is rationed at Jow official: prices to individual farmers if they 
a@1l their rice to the government. Similarly, the fertilizer is rationed at 
the official price to the censuners’ sooperatives if they sell their rica te 
the government. The official price of the fertilizer ration is low enough 
te serve as an inducement for the sale ef Tice to the government. 


5. Jnother method of government rice collection is the patriotic rice contribution 
sovenent, which urges farmers to contribuse Fice to government stocks, in 
additian to that paid in tates ang 801d te scoperatives and other agenciss » 

The movement has been moderately successful, although the number of voluatary 

rice contributors is not large. Part of the propaganda for voluntary contribu- 
tion is ag follows: “In spite of bumper orops in South Korea, rics prices have 
risen to several thousand won per tu (“{ ) (approximately a peck), and farmera 


CLASSIFICATION CONFI TEpPILAL 
<[xsre | DISTRIBUTION 


This document is hereby regraded to 
CONFIGENTIAL in accordance with the | 
letter of 16 Cctober 1978 from the | 
Director of Central intelligence to the / Auth: 
Archivist of the United States, i 
Next RevieARRXEVe6bs or Release 2906/01/03 : CIA-RDP§ 2-60%57R6 subse 


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government employees: and laborers in state-owned factories 


Approved For Release 2666/4 (rGtA-RDP82-00457R005000530009-3 


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and laborers are Starving because vicious merchante and speculators, in league 
with corrupt officials, have exported several million bushels of polished rice 


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to Japan." This propaganda has had little effect among educated farmers, 
6. 


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The rice collected by the government is distributed partly as rations to 


; © undetermined 
amount is exported to the USSR. Tha remainder is stored by tho government 


48 a aefeguard against inflationary trends in the market price, The governe 
mont desires maximum prica level of 300 won per small tu, When prices rise 
above 250 won per smealltu, the sovernment releases stored rice to consumers’ 
cooperatives at 2) won per small tu, rationing it at one smell tu per member 


per day. Conversely, when the price drops below 200 won, the cooperatives 
purchase rice at that rate from their members, 


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CONFIIGATIAL 


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Approved For Release 2006/01/03 : CIA-RDP82-00457R005000530009-3