Agriculture employs more than half of country’s population but accounts for only one-sixth of national output. Many government programs like NITI Ayog have encouraged to increase agricultural productivity by promoting high output crops such as horticulture. But in reality, cultivation of cash crops is leading to rising agrarian distress due to the needs of input intensive, assured irrigation factors for these crops. There is high vulnerability in market due to price fluctuations and the supply chains for these crops are weak. This makes farmer to face loses in horticulture farming. Among the horticulture crops, onion is the one which has huge price fluctuations, impact the inflation and cause loses or mere break-even to majority of small farmers. In this project, onion is selected as a crop to investigate on its supply chain and trading practises in established markets as well as in villages. Factors are studied that affect the onion farming and marketing. Thus, an attempt is made to develop an economic model to improve profitability to the onion farmers by taking all the studied factors into consideration.