KARACHI, Oct 9: Cotton prices on Thursday soared to an all-time higher level as spinners again indulged in panic buying in a bid to grab the floating stock and the consequent fresh price flare-up.

While phutti (seedcotton) price rose to Rs1,400 per 40 kg against the official support price of Rs800, most of the deals in lint were done above Rs3,000 per maund, the highest rate being Rs3,100 per maund, which are the highest-ever rates so far for the both.

The previous highest rates for the both were recorded at Rs1,300 and Rs2,800 per maund in 1978 when crop was hit by a late pest attack, dealers said.

“The market witnessed a virtual scramble for the available lots as both the mills and the spinners were not inclined to take even a technical breather as reports about a short crop kept pouring in from the Punjab cotton belt,” says a leading cotton broker.

The crop is certainly short owing to late pest attack in the southern Punjab cotton belt but not that short as being speculated by the industry, he said adding “how will it remain competitive on the world textile market is anybody’s guess.”

No one could dispute the fact that mill consumption figure has swelled to about 13m bales after over a 100 sick units were put in the streamline and a lot of expansion work carried out during the last couple of years but a little restraint on the part of spinners should have stabilized the price line.

“The market appears to be in the tight grip of the grower who has tactfully manoeuvred the prices in his favour after holding back stock of phutti,” brokers said adding “he has already the best price leaving the spinners and the mills at the mercy of counter-balancing of forces governing the world textiles.”

What seems to have further aggravated the price situation is the higher world prices, which make imports more expensive and hence the mad rush for the local stuff, they said.

It was in this background that official spot rates were marked further higher by Rs125 per maund at Rs2,800 but in the ready section most of the deals were done well above them.

Ready business was fairly brisk as till late in the evening about 20,000 bales changed hands. The following being some of the notable deals in rupees per maund without 15 per cent sales tax;

SINDH VARIETY: 600 bales, Nawabshah at Rs3,000, 900 bales, Shahdadpur also at this rate.