资讯 1 10 英文网 294 lunbotu 558364 The general plan for reserve rotation 2016-03-24 22:05:45 yangfang
Home  >>  Main Topic
The general plan for reserve rotation
2016-03-24

Yin Jian, deputy director of the economic and trade department of NDRC introduced the principle and initial plan for the rotation of state reserves. 

  

According to Yin, government is particularly cautious about releasing stockpiles and has carried out many investigations. Last year’s auction, although not successful with a very small sale, provided much needed experience for a long term destocking policy. 

  

The general idea of reserve policy, according to Yin, will follow four major principles. 

  

1. Promote the sustainable and healthy development of the industry. An overall consideration should be given to domestic cotton growing and the development of textile industry. It is important to properly deal with the relationship between stabilizing cotton production and accelerating the digestion of reserves, and to achieve a coordinated development of cotton production, processing and marketing. 

  

2. A smooth running of cotton market. To maintain a regular and systematic reserve rotation in order to achieve a steady market expectation. 

  

3. Reducing financial burden. 

  

4.Building a complete reserve policy 

  

Reserve rotation will be “asymmetrical in buying and selling, sell first and then purchase, more sales and less purchase”. The reserve selling will be processed regularly with public tenders and then normalized. The floor price will follow the market and determined by a pricing mechanism. Reserve purchase will come after auction and will be a limited amount of high quality cotton, in order to improve the overall quality of the stock. 

  

Reserve sales will be delayed to mid-to-late April and there is a limit to the total offer. Daily offer will be controlled and government will try to offer as much high quality cotton as possible in offer. Imported reserve will be given priority in auction.