This report presents a sector profile and value chain analysis of the shallot industry in West Nusa Tenggara, identifying potential areas for SADI program support. The research shows that shallots are a profitable but potentially high risk niche crop in some parts of the province, particularly Bima. Apart from assisting with the problems of financing the relatively high value of inputs, such as seed, fertiliser, water, weed and pest control, the SADI program could seek to research seed varieties and the most economical way to produce propagation materials (bulbs) locally, potentially saving significantly on input costs and improving yields and bulb quality. The analysis also shows that there is potential to better link production with markets elsewhere in Indonesia. However, further research is required to explore possible linkages between end users or processors (in Java, Kalimantan and Makassar) and cooperative groups, which could be developed to improve marketing, buying and financial service activities.