The study was conducted in two onion producing kebeles of Nagafile and Gorosole in Toke Kutaye district, west shewa Zone of Oromia national regional state to analyze Onion market chain. The data were collected from 120 farmers and 10 traders and 12 consumers. The data for the study was gathered both from primary and secondary source. Specifically, the study attempted to address the main actors involved, structure-conduct-performance and challenges and opportunities of onion market chains in the study area. Analysis of the study clearly identified what Onion market conduct, structure and performance look like in the study area. The Onion market chain in the study area was characterized by oligopolistic market structure. The major barrier to enter into Onion market chain was capital requirement and cost of licensing. The available opportunity and challenge in the study area were high demand from consumer, suitable climate for production and poor credit service, lack of market information, lack of suitable storage respectively. On the contrary, the level of consumption is very low for reasons of unavailability and market chain imperfection. Capacity building for all actors in the chain, strong extension service on product handling and marketing and improving market information and cooperative development.

Keywords: Market chain, Onion, Nagafile, Gorosole, Toke kutaye