In July and August, the National Development and Reform Commission will rotate out part of the reserve cotton

A reporter recently learned from the National Development and Reform Commission that, with the approval of the State Council, the relevant departments decided to follow the principles of promoting the sustainable and healthy development of the industry, guiding the stable operation of the market, reducing the fiscal burden, and improving the cotton reserve regulation mechanism, and to adopt the method of “asymmetric rotation, rotating out before rotating in, and rotating out more while rotating in less” to orderly digest the national reserve cotton inventory and gradually reduce the reserve scale to a reasonable level.

According to the current cotton supply and demand situation and market operation trend, this year reserve cotton rotation out will be arranged in July and August through the National Cotton Exchange Market by public bidding. The rotation-out volume is tentatively arranged at 1 million tons, and sales will stop after the new year begins in September. The specific volume and price arrangements are: 330,000 tons of domestic cotton from 2011, with a bidding floor price (converted to standard grade 3128B, the same below) of 13,200 yuan/ton; 470,000 tons of domestic cotton from 2012, with a bidding floor price of 14,200 yuan/ton; and 200,000 tons of imported cotton from 2012, with a bidding floor price of 15,500 yuan/ton. Rotation in will be arranged separately according to the actual transaction situation of rotation out and later market operation conditions, and will be carried out at an opportune time during the period when new cotton is concentrated on the market. The rotation-in volume will not exceed 40% of the rotation-out volume this time at most, and the price will follow the market.