North Korea is reportedly pursuing agricultural reform to boost production, including allowing farmers to freely trade up to 50 percent of their produce in the market.

A source in Beijing close to both North Korea and China says the North's Supreme People's Assembly will discuss economic measures on Tuesday to ease food shortages and curb inflation of agricultural goods.

The source says incentives will be provided to farmers to grow more produce and keep or sell 30 to 50 percent of what they grow.

North Korea has clamped down on private food production since 2005. Currently, most products grown at collective farms are handed over to the state at a much lower price than the market rate.