China, the world's biggest coo king oil consumer, is planning to sell 1 million metric tons of rapeseed oil from state inventories to make room for this year's harvest , according to industry sources.

The government may sell the oil in a series of auctions beginning next month, with minimum bids set at about 10,000 yuan ($1,602) a ton, the sources added, asking not to be identified. Older inventories from 2009 may be priced lower, they said. State agencies have bought and processe d rapeseed since 2008 to boost rural incomes, reducing supply and boosting imports.