KARACHI, May 20: Cotton prices on Tuesday rose to a record level of Rs4,000 per maund as spinners were in a defiant mood to grab the floating stock irrespective of their export parity levels.

A deal of 200 bales from a lower Sindh ginnery (Sultanabad) was finalised at Rs4,000 per maund, which is so far the highest ever level in the cotton trading history of Pakistan, dealers said.“The spinner, who opted to set a new lint price record, may have more than one good reason to set the pattern for the new crop which is still in the sowing stage,” they said.

“It seems a ‘mili baghat’ of the ginner and the spinner to push prices higher to a level which could be more beneficial for the growers but against the textile sector as a whole during the coming season,” some others said. “But there is no reason to go that far for a commodity which is not readily available,” they added.

No one could deny the fact that production cost of cotton has doubled during the last couple of weeks owing to rising prices of inputs including fertiliser, electricity and pesticides, but seed cotton prices should have a relevance to world rates, they added.

“It appears to be a sympathetic price flare-up in line with other farm commodities,” said a ginner “why cotton should be an exception”.

But the general view is that local prices of lint should be competitive and in line with the international markets as it has to feed a major export earning sector that has 65 per cent share in total export proceeds.

Indications are that the textile industry is heading for another crisis and it is speculated that many more units may be closed down if local prices are not contained, floor brokers said.

Official spot rates were again firmly held at the overnight level of Rs3,475 per maund, but on the other hand New York cotton futures were marked fractionally up by 0.15 and 0.04 cents per lb at 71.81 and 77.38 cents for both the ruling July and the forward October contracts respectively.

The following notable deals were changed hands on Tuesday evening: 1,000 bales, Sadiqabad at Rs3,450 and 1,000 bales, Harappa at Rs3,750.