Rice production is the most dominant farming system in Kilombero valley in Morogoro region, Tanzania, accounting for more than 80 per cent of cultivated land within the valley. This paper examines changes in rice commercialisation and livelihood outcomes for different categories of farmers in the Mngeta division, Kilombero District, Tanzania. Understanding the underlying factors of agricultural commercialisation enables policymakers to ensure that policy interventions promote inclusive and equitable involvement of all farmers and other value chain actors, especially women and youths, who have been excluded from most development initiatives in the past.