Revival of Uganda Cotton Sector

REVIVAL OF THE UGANDAN COTTON SECTOR
In 1986, a new government came to power and restored Law and Order. This Government embraced a macro-economic reform policy geared at promoting a healthy and sustainable economic development by divesting Government Parastatals through outright sell, privatization, equity participation or restructuring the viable ones. In 1994, this government enacted the Cotton Development Act which liquidated LMB and totally liberalized the marketing, processing and export functions of the cotton sector. The restructuring of the Cotton Sector was carried out with the support of the World Bank (IDA) and IFAD (International Fund for Agriculture Development) project; the Cotton Sub-sector Development Project (CSDP), which ran from 1994- 2000.

Through liberalization, the monopoly of the Co-operatives was removed and the primary and secondary seed cotton marketing and ginning were opened to private sector competition both local and foreign. The National Agricultural Research Organisation (NARO) was established by law to undertake Research, Seed Breeding and Technology Development while the Cotton Development Organisation (CDO) was established to Regulate, Coordinate and Promote all the aspects of the cotton sub-sector in the country.