KARACHI, Aug 7: Cotton prices on the Karachi Cotton Exchange rose further higher on Thursday as ginners vowed to maintain unity on the issue of strike until their demands, notably renewal of their conversion licences and withdrawal of Rs5 per bale tax, are met.

Although most of them did not accept fresh phutti arrivals from the growers but maintained partial ginning operations to process phutti arrived in their ginneries and lying on the plinths before the strike in an effort to maintain the quality of lint, floor brokers said.

They said some of the needy growers having no storing facility have lowered their asking prices below Rs2,000 from the recent high of Rs2,100 per 40 kg and some of the ginners are said to be accepting it.

Leading growers are also sending their phutti stocks to selected ginners but mostly on an unfixed basis in the hope that prices could rise after the strike ends, they said.

However, spinners fear a further increase in selling prices by the ginners after the strike ends as some of them are already not inclined to sell their stocks below Rs4,300 per maund and stray lots did change hand at this rate.

Physical business in the ready section was, therefore, light as till late in the evening about 1,000 bales, reported to have changed hands, including some at Rs4,300 per maund, floor brokers said.

Meanwhile, reports coming from the central Sindh and upper Sindh cotton belt indicate that the recent spell of monsoon rain has significantly brightened the prospects of higher cotton output as it added to the growth of the standing crop.

New York cotton futures recovered after several lean sessions as both the ruling October and forward December contracts were quoted higher by 0.49 and 0.53 cents per lb at 67.46 and 69.56 cents, respectively.

Official spot rates were quoted higher by Rs50 per maund at Rs4,250.

The following are some of the deals, which were gone through on Thursday: 200 bales, Pir Mahal at Rs4,300, 400 bales, Pak Pattan at Rs4,275 to Rs4,300, 200 bales, Khanewal at Rs4,285, 200 bales, Tando Adam at Rs4,225 and 100 bales, Shahdadpur at Rs4,200.