Agro-processing industries play a key role in rural development providing food, shelter, and clothing generating employment and income and contributing to overall economic growth. The expansion of employment opportunities for growing labour force has been one of the major thrusts of India's economic policy. Therefore, the strategies for employment generation should give more emphasis to labour intensive industrialization. In this context, the development of agro-processing industries has found enthusiastic endorsement from planners and policy makers in India as a strategy of labour intensive industrialization. However, numerous state interventions targeted towards the development of agro-processing industries in the past have been rather half hearted. For the wide range of products, the benefits have been cornered by relatively modern and less labour intensive units. Thus, become of such policies and a variety of other factors, these industries were gradually, being replaced by the modern sectors with its immediate adverse effect on employment.