The processing of citronella oil is a good opportunity for unemployed people of India. The present study was undertaken to know the profitability of citronella oil processing unit, so also, to identify the constraints/ problems in the marketing and processing of citronella plants. Three-citronella oil processing units viz., each from solapur, Kopergaon and Nandurbar were purposively selected for the study. The citronella oil processing units under study was an economically viable. However, in order to reap a maximum profit from the citronella oil-processing unit, the installed capacity of unit should be utilized at fullest extent. For fulfilling 0.5 ton and 1 ton capacity of a citronella oil-processing unit the area under citronella foliage of sample growers should be atleast 6-7ha and 10-12 ha respectively. Low demand for oil in the local market, shortage of citronella foliage, more crop duration, low yield, price fluctuations, cheating from the agent were the important problems reported by citronella growers.