Ancient skills such as spinning and weaving are deeply rooted in Sudanese heritage. Spinning was a craft practiced in the olden countryside, involving the use of a primitive wooden tool known as mutrar to produce popular national dresses such as the woman's Ferdah, though the spun material had to be imported from abroad.

The first modern textile factory was established by the private sector in Anzara (Equatoria State) in 1945. It was designed to produce 4-5 million yards per year, using raw cotton grown and ginned in the same local area.

The development of the textiles industry on a large scale began with the establishment of the first national government in 1956. This came following extensive consultation by the Sudanese government, who confirmed the feasibility of such a vital industry in Sudan.

Sudan's textiles industry has long been dependent on upon homegrown cotton. Sudanese cotton is acknowledged to be of good quality, being recognised internationally. Cotton is one of Sudan's most important cash crops, while the export of cotton lint contributes to around 20 per cent of Sudan's foreign trade.

Three species of cotton are currently grown in Sudan:

- Short-staple species, grown in the Kordufan and the Eastern States
- Medium-staple species; grown in the Northern and Eastern States
- Long-staple species; grown in the Gezira State (mainly in the Gezira Project and Managil Extension)

The UK was the first country to import cotton from Sudan, encouraging other countries such as France, Wast and East Eurpe, the People's Republic of China, East Asia and Japan to do likewise. India is listed as the largest importer of Sudanese cotton, with Thailand coming next. In 1998 India purchased 114,000 bales of cotton.