A U.N. report shows that the price of grains in North Korea is sharply rising in the wake of a significant cut in food rations.

The World Food Program (WFP) said in a report Tuesday that the price of rice traded in markets in Pyongyang this month witnessed a jump of 40 percent while the price of corn sharply rose 20 percent.

The sudden rise in grain prices is the apparent result of a cut in state food rations.

WFP monitors had reported earlier this month that the North's government handouts have been cut from 300 grams of cereals a day to 250 grams. The minimum daily required cereal ration as set by the WFP is approximately 500 grams.