After implementing the policy of temporary cotton purchase and storage for three years, China's national cotton stockpile is estimated to be around 11 million tons.

The government is under pressure to sell used cotton. The longer the cotton is stored, the harder it is to guarantee its quality, and it will increase storage costs. One auction last year sold just under 64,000 tonnes, well below the target of 1 million tonnes, as the price set by the government was unattractive.

At a closed-door meeting last December organized by Cncotton.com, a state-owned industry research body, ginners and textile companies spoke with government officials about plans to sell state cotton, according to one of the participants. Opinion. The person was not authorized to comment to the media.

Zhu Beina, president of the China Cotton Textile Industry Association (CCTA), said that some people have also consulted the association on related plans.

Du Min, an expert from the Rural Economy Research Center under the Ministry of Agriculture of China, believes that the current situation is fundamentally unreasonable. Half of the world's inventory is in China, and a part must be released. Du Min is regularly consulted by the Chinese government on cotton policy.

He pointed out that the 10 million tons of cotton in the warehouse is quite a lot, and the financial burden and its impact on the market are quite large.

The National Development and Reform Commission, which oversees China's grain and cotton policy, did not respond to a faxed request for comment on the discussions.

Rumours of a possible sale of reserves sent May futures down 1.45% in the first two sessions of the year. At present, the price of cotton futures in May is 11,325 yuan per ton, which is the same as the import price.

International market participants are paying attention to the above-mentioned plans, as the sale of cotton reserves may further weigh on China's cotton import demand. China is the world's number one textile power.