The Central Reserve Cotton Management Measures Will Be Officially Implemented Soon!

Recently, the National Development and Reform Commission and the Ministry of Finance jointly issued the Measures for the Management of Central Reserve Cotton (hereinafter referred to as the Measures), which is to implement the decision and deployment of the Party Central Committee and the State Council on strengthening the construction of the reserve system, further strengthen the management of central reserve cotton, and better play the role of central reserve cotton in macro-control. The Measures will be officially implemented as of April 1, 2024.

The Measures adhere to the goal orientation and mainly provide for strengthening the management of central cotton reserves from the following aspects:

First, serve macro regulation. Adhere to the general requirements of serving the needs of cotton market regulation, emergency supply guarantee, inventory update, etc., and clarify the specific circumstances of starting the rotation, collection, storage, and use of central reserve cotton.

The second is to clarify the responsibilities and procedures. It defines the responsibilities of the National Development and Reform Commission, the State Food and Reserve Bureau, the Ministry of Finance and other departments and units in the management of the central cotton reserve, and stipulates the procedures for issuing the central cotton reserve plan, the requirements for implementing the report, and the operation methods.

Third, strengthen storage management. The Group and the storage enterprises are required to strengthen internal control, implement the management of special warehouse and special account, ensure the quality of stored cotton, and expressly prohibit unauthorized changes in storage locations and varieties, adulteration, shoddy goods, deliberate delay in warehousing, and use central stored cotton as external guarantee or debt repayment.

Fourth, strengthen supervision and inspection. Specify the supervision and inspection responsibilities and authorities of relevant departments on the management of central reserve cotton and the implementation of rotation, storage and use plans, and punish the behaviors violating the provisions of the measures accordingly.

Next, the National Development and Reform Commission and the Ministry of Finance will work with relevant parties to implement the Measures, comprehensively strengthen the management of the central reserve cotton, ensure that the quantity is real, the quality is good, and the storage is safe, and reasonably arrange rotation, collection, storage, and use, so as to give full play to the macro-control role of the central reserve cotton.

(Source: China Cotton Association)