China ready to trim stockpiles of cotton

China said on Thursday it will start selling its massive cotton stockpiles this year, in a move likely to depress demand as the country's mills hold off buying in anticipation of sales of discounted fiber.

Market rumours have swirled for weeks that China was preparing to release some of its holdings, which have swelled to around 10 million tons - more than 40 percent of world stocks.

China, the world's top consumer of the fiber, would issue detailed sale plans in the next 10 days, Yin Jian, an official at the National Development and Reform Commission, told an industry conference.