Abstract: Rice is a new crop in Ethiopia, and demand is increasing. Currently, rice growing areas are quite far from their potential, and the government is forced to import huge quantities of rice to meet domestic consumption due to insufficient production and market supply. The study focused on the factors influencing rice market supply and profitability for smallholder farmers in Pawe, North Western Ethiopia. Purposive and simple sampling techniques were used to choose target kebeles and respondents. The quantitative data were gathered from 185 farmers and 16 traders following triangulation of the qualitative data via focus group discussions and key informant interviews. Descriptive and inferential statistics were used to analyze the quantitative data that comprise gross margin analysis. A multiple linear regression model was used to analyze the factors of rice market supply. The findings revealed that farmers, local traders, wholesalers, and retailers were the main actors in rice marketing in the area. The results showed that retailors obtained the highest gross profit of 289.25 birr from paddy and 580 birr/100kg from milled rice. The regression analysis revealed that education level, farming experience, rice-allocated land, productivity, training, lagged price, and frequency of extension contact are all positively and significantly associated with rice market supply, whereas household size and market distance have been negatively and significantly associated with market supply. Therefore, it needs placing greater focus on each positive and significant variable in order to improve rice market supply and better connect it to rice value chains, ensuring sustainability of market supply.Abstract: Rice is a new crop in Ethiopia, and demand is increasing. Currently, rice growing areas are quite far from their potential, and the government is forced to import huge quantities of rice to meet domestic consumption due to insufficient production and market supply. The study focused on the factors influencing rice market supply and profitability fo...Show More