ISLAMABAD: Cotton prices hit a record high both in global and local markets with Rs.7,600 per 40kg in Pakistan and 125 cents per pounds internationally.

Pakistani exporters have done the export deals of 200 tons at a rate of 120 pound per cent, private news channel reported on Friday.

Due to the recent devastating floods, cotton production in Pakistan has reduced drastically, below than the domestic industrial needs.

Whereas, India has put a ceiling on exports exceeding 5.5 million bales of cotton, although their production is far above than their domestic needs.

Meanwhile, a report from New York says; Cotton prices reached an all-time peak on Friday as inventories dropped amid growing demand in Asia.

In New York, ICE December cotton futures touched 1.1980 dollars a pound, exceeding the previous record set in 1995.

"Continued robust Asian demand -- and Chinese import demand in particular -- coupled with supply-side problems and the marked decline in stocks has underpinned the rally," said Barclays Capital analyst Sudakshina Unnikrishnan.

Cotton prices have pushed up in recent months, impacted by a drop in production in Pakistan following devastating floods and a severe monsoon season in India. The two countries are among the world's largest cotton producers.