Understanding the dynamics of food value chains is pivotal to enhance its efficiencies. Groundnut was opted as the reference crop. The study was administered as value chain analysis. Gross Margin (GM) and Index of Marketing Efficiency (MEI) were determined. Mullaitivu district was selected as the research site with a sample of 56. Farmers recorded the highest GM (40.34%) and their interest in further profit in means of investment and expansion was less. Three channels were identified. The highest MEI (0.94) was recorded for ‘Channel 3’. ‘Channel 2’ indicates the lowest figure for the MEI (0.23). The key value addition spot in the whole value chain is the Colombo-based wholesalers.