CHINA will start annual cotton sales, set to occur from May to August, in order to reduce its massive State reserves down to a “reasonable level,” the country’s State planner said Friday.

    For this year, the reserve sales will begin May 3 and continue until Aug. 31, with total sales not exceeding 2 million tons, according to a joint statement by the National Development and Reform Commission (NDRC) and the finance ministry.

    Daily sales during this year’s offer period will not exceed 30,000 tons, with imported cotton to be offered first, it said at a statement posted on the commission website.

    The bidding price for the cotton will be set based on both international and domestic prices during the week prior to the sale, it said.

    The sales will halt after the new harvest from September to February the next year, according to the statement.

    Delegates attending the full annual session of China’s parliament last month said that the country’s cotton stockpile stood at about 11 million tons. The delegates said that although the stockpile had been useful to help stabilize prices, its maintenance had placed too great a burden on the State.

    China also plans to buy high-quality cotton at market prices from September to February to improve its reserve quality, the NDRC said. (SD-Agencies)