0ir:;P in Assela town. In order to achieve this, a multi-stage sampling procedure wasrnemp oyed. On the whole useable questionnaires were collected from 200 katikalarnproducing households in six systematically selected kebeles and 30 katikala distributors.rnIn order to achieve the objective, both descriptive and statistical analytical toolsrnhave been utilised. Pearson 's product moment analysis model was employed to seerndeterminants of income in the activity.rnThe finding indicated that Katikala industry is found to support huge labour forcern(almost entirely of female) particularly in the production sector. The lack of jobrnopportunity, family responsibility, insufficient family income from other sources are foundrnto be the major pushing factors of the operators into the activity. The producers are usingrnsimple and rudimentmy tools and they work in in sanitary conditions.rnThe finding filrther revealed that Katikala producers found to generate an averagernmonthly income of I 02. 9 birr, while the distributors get avegare monthly income of 260.0rnbirr.rnThe problems of lack of capitals, their incom ({1m other sources and their familyrnsize found to determine monthly income of the atakana roducers. Similarly, investingrncapital" work experience and age of the distributors are found to be the principalrndeterminants of income to this group. The problems of housing, fluctuation of cost of inputrnand out put, infrastructural facilities and the rudimentary equpements used in the activityrnand the backward techniques of production are found to be identified constraints amongrnthe producers, where as the abcence of defined predetermined location for sale ~rnlack and improper transportation are found to be constraints for the distributors.