Rice is a new crop for the country in general and the study area, Metema, in particular. There isrnan immense potenlial rice produclion area and high consumer demand. However, Ihe rice sec/orrnis not jidly developed as compared /0 the potenlia!. Many institutional, organizational andrntechnologicalfaclors were altributed 10 existing inefficiencies in rice production and uliliza/ion.rnThis study was undertaken in /vietema District of North GondaI' Zone, Amhara National RegionalrnState and has been designed to throw lighl on the challenges, opportunilies and entry points forrninfUsing jilrther innovation (technological institutional and organizational) for upgrading thernrice value chain. 1denlification of aclors, their role, linkage, altitudes, habits and practices in thernvalue chain; analyzing the institutional arrangements and enabling environment that affect Ihernjimclioning of the value chain; and idemifoing recenl innovation activities and their immediaternoutcomes in the District were Ihe focus of Ihis sludy. Primary data was collected }i'om J 00rnrandomly selected farm households and other rice value chain actors including inpul suppliers,rnmarkeling agents, consumers and support services. Dala was collected using both qualitativernand quantitative methods which incOllJOraied semi-slructured interview schedule, focus grouprndiscussions, key informant interview and personal observation. The main findings of Ihe researchrnrevealed that, there are multiple public and non-public actors involved along the rice valuernchain, upstream }i'om input supply to downstream consumers, playing different role. However,rnthere is no mechanism to coordinale multiple actors together for effective and efficiel1lrnjill1ctioning of the value chain. There is public sector actors' domination with limited privaternsector involvemenl in Ihe value chain. A long tradition of limited responsiveness, top-down,rnhierarchical, non participatOlY/ exclusiveness and less risk taking type of organizalionai culturernand, habits and practices lead DoARD to have weak interaction, knowledge and informationrnsharing with the various actors along Ihe value chain. As to the linkage, weak and informalrnlinkage between chain actors characterizes the rice value chain. Lack of post harvest processingrnlechnology( rice polishel), limiled access to and supply of inputs, severe termite at/ack, nonrnavailability of ,veil developed rice market, high labor demand for crop management, absence ofrnresponsible body who works on actors interaction were some of the challenges identified forrninnovation at various stages of rice value chain. Absence of rice polisher machine was Ihe mostrncritical problem that affects the whole value chain. On the contrmy, increased ftlrmer'srnawareness about and availability of improved rice varieties, exislence of favorable land andrnciimalic condition, presence of high consumer demand, and increased institutional support ji-omrndifJereni GOs and NGOs were menlioned as opportunities for innovation. In order 10 address Ihernexisting problems and to increase competilive advantage of the rice production, plat forms andrnparlnerships have to be crealed between value chain aclors to create an enabling environmel1lrnfor sharing of information, knowledge and solve existing problems of shortage of rice polisherrnmachine and input supply services. The existing extension service should also be strengthened inrna way that enables working in harmony with relevant actors to bring about change for efficientrnand effective delivelY of agricullural inpuls/services.