According to World Bank (2016) data Agriculture accounts for 37.23% of the total Ethiopian GDP and 80% livelihood. The agricultural sector is predominantly based smallholder farmers (95%). Average holding per household is 0.9 ha. The second growth and transformation plan has given strong emphasis on intensification and commercialization of smallholders’ agriculture. Low level of input utilization is mentioned among the key bottlenecks towards increase in production and productivity. In response to address this gap the GTP 2 highlighted strategic targets by 2020 among which scaling up of improved seed and fertilizer supply by 90% from 2015 status, availing 308 tested technologies in crop, agro mechanization, bio- technology, and agricultural quality and nutrition were the notable one; and scaling-up of input voucher system tested in 81 woredas to resolve problems of input finance to all woredas. The plan aims to achieve an overall yield increment of increased productivity of cereals, pulses and oilseeds by 45%, 35% and 30%, respectively, in 2020. The Ethiopian agricultural input supply system has strongly been dominated by the public sector. Fertilizer is fully supplied by government enterprises. Likewise, over 90% the improved seed is also delivered through public seed enterprises. Recently, the Ethiopian Government is creating space for the private sector. Liberalization of input markets and increased involvement of private sector to accelerate economic growth and improve competitiveness are key pillars of the current GTP. That envisions well developed efficient agricultural input and output markets to accelerate the pace of economic growth.