In the era of sustainable development, the new economic theory of development today is “environmental economics” which balances between economics and ecology. In all development programs, including agriculture, there is a fusion of economic development and ecological conservation. Chemical fertilizers are used considerably in conventional agriculture, which negatively affects agricultural land and the economy of farmers. The UNCED Agenda 21 directive highlights the need for ecological and social equity for a sustainable future. In view of this, farmers can be encouraged to produce vermicompost from the organic resources available on the farm. The rural farming community struggles to cope with the high costs of fertilizers and subsequently the implications that come with them. Therefore it is necessary to materialize the adequate capital for agriculture by evaluating the economic aspects of the production and marketing of vermicompost. Vermicompost can be produced on farm using locally available resources and simple devices. This will also develop an opportunity for entrepreneurship among Ethiopian farmers. Marketing efficiency depends on the purchasing behavior of farmers. In the present study, an evaluation was carried out on the cost of materials required to start with a vermicompost unit, the cost of producing vermicompost and the final benefit derived from it. To start with one unit it takes almost 2,830 Ethiopian birr and the compost nutrient analysis costs 250 Ethiopian birr per sample. The initial total cost of production could be 3000 Ethiopian birr, which will be lower in subsequent years as the production unit is permanent. The emerging business environment can add advantages to commercialization of vermicompost and hence use of paper in citrus cultivation in Maharashtra. Agricultural Economic Research Review, 20 (Conference): 608, 2007.Shivakumara, C. Production and Marketing of Vermicompost in Karnataka: A Case of Dharwad District, MBA Thesis (Agribusiness), University of Agricultural Sciences, Dharwad, 2008.Shivakumar, C ., Mahajanashetty, SB, Murthy, C Basavaraja, H and Hawaldar, YN Production and marketing of vermicompost in Dharwad district: An economic analysis. Karnataka J of agric Sci., Vol.22 no. 4 pp. 850-853, 2009.Table-1 Materials and expenses for construction of a vermicomposting unit No. Item Measurements Amount Unit cost (birr) Total cost (birr)1. Wood no. 20 50 8002. Bundle of straw 4 100 4003. Nails 1 kg 40 404. Polyethylene sheet 16 m 20 3205. Sieve 2 m 35 706. Earthworm 2 kg 300 6007. Carpenter (for construction) Man days 3 200 600 Total 2830