Nation to sell 1 million tons of cotton reserves

China will auction an initial 1 million metric tons of cotton from its bulging State stockpiles over the next two months and will also consider purchasing when the harvest starts later this year, the country's top economic planner said on Tuesday.

While the State sale will add to local cotton supplies, purchases during the harvest in September will keep a floor under domestic prices, helping the world's top consumer of the fiber gradually reduce stocks without depressing the market.

The aim is "to release and then buy in, sell out more and buy in less, in order to use up State reserve stocks", the National Development and Reform Commission said.