Ethiopia is emerging as an important rice growing country in Eastern Africa. However, there are several constraints which drastically affect rice production and its marketing system under smallholder farmer’s condition. This study aimed at examining the socioeconomic determinants of rice production and marketing in low producer farmers in the study area. A sample of 160 rice producer and 50 traders were interviewed using structured questionnaire. The result of the study showed that sex of household head is positive and statically significant in explaining rice production at 5% significant level (p<0.05). Oxen ownership (p<0.07) and land size (p<0.067) were directly proportional to rice production and significant at 10% level of significance respectively. Moreover, labor availability and rice seed rate was highly significant at 1% level of significance (p<0.001). It is recommended that farmers should use intensive farming by increasing productivity of the land using improved varities, application of other alternative traction power(oxen) , adopting labor saving technology and management of seed rate (agronomic practices)during sowing . Moreover, there is a need to consider gender differentials in rice production system. The S-C-P- model reflects that the structure of rice marketing is imperfect market (Oligopsonistic), only few buyers governed the market. The Gross marketing margin indicated that assemblers harvest the highest marketing margin as compare to other market participants and farmers received below the total average share of the margin. High investment capital, and competition with unlicensed traders were the barrier in rice marketing. Hence, facilitating loan (credit services), increasing the bargaining power farmers & licensing illegal traders were the recommendation forwarded.
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