For filling gaps in demand and supply Ethiopia has been importing cotton. The new strategy will make recommendations for increased domestic production that will reduce and eliminate reliance on imports. It will set new standards for cotton and is expected to devise a way out to overcome price fluctuation on the global market and its unforeseen impact on Ethiopian cotton growers.

Currently, 136 textile and garment factories, at medium and higher scale, are fully operational. A delay in rainfall has cast doubts on attainment of cotton target for 2015-16. A team will make an assessment in the north and south western parts of Ethiopia, based on which it will re-estimate the expected cotton harvest for 2015-16.

The main problems are: rising demand, complexity of increasing number of textile industries and the supply value chain. Other problems are quality and quantity of cotton inputs as well as gaps in the value chain of input production. The experiences of other African countries with genetically modified cotton will be assessed. The UK is funding a 15-year cotton strategy for Ethiopia with the intent of having a new institutional arrangement for cotton development.