North-East India comprises of eight states and about 77% of the working population is dependent on agriculture for livelihood, hence development of agricultural marketing bears great importance. It has been seen that there exists a weak link between marketing channels and poor marketing infrastructure, which ultimately leads to high and fluctuating consumer prices. Marketing infrastructure is considered to be the wheels of the economic activities. The rural marketing is unorganized in the region. The topography of the region also acts as a hindrance for movement of agricultural goods to reach proper market place. Beside infrastructure, procurement process, approach of marketing and processing facilities also acts as a major constraint of agricultural marketing in NE Region. The socio-cultural taboos of the region also acts as a constraint for development of agro based industries which could have served in the value addition of the economy. This paper tries to analyze the prospects and challenges faced by agricultural production and agricultural marketing in NE region. The study found that non- availability of bio-pesticide, lack of information about organic farming, absence of crop insurance etc. as some of major problems abstaining agricultural production. Lack of proper information of the market, lack of proper storage facilities, high cost of production, lack of agricultural credit facilities etc. serves some of the significant problem in agricultural marketing.