Assam has rich potential for accelerated growth in the food processing sector due to its favourable agro-climatic conditions and strong agri-horticultural production base. The persisting gap between the production of fruits, vegetables, pulses, etc., and processed food products, however, is reflective of the underutilization of this potential. Official data shows that the state produced 37.47 lakh MT of fruits and vegetables in 2021–22, of which fruits accounted for 25.39 lakh MT. The state ranks second in pineapple production in the country, while it also holds the distinction of being the largest producer of bananas in the entire northeast region. The latest available data shows that India imports about 11.64 lakh MT of fresh fruits worth Rs 6,650 crore and 23.84 lakh MT of vegetables worth about Rs 6000 crore. This also indicates the potential domestic market for raw indigenous and organic fruits and vegetables grown in Assam. A loot at fund disbursement and utilisation under various flagship central sector schemes in the food processing sector presents a depressing situation of poor fund absorption capacity continuing to grip the state. The Pradhan Mantri Fomalization of Micro Food Enterprise (PMFME) is a flagship scheme aimed at assisting two lakh micro food processing units across the country with a total outlay of Rs 10,000 crore for five years from 2020-21 till 2024-25. The Ministry of Food Processing Industries (MoFPI) set the target of providing assistance to 12,778 units with a total budget allocation of Rs. 632 crore for this five-year period. The net release to the state under the scheme for four years, from 2020–21 until 2023–24, is only Rs 34 crore. These figures speak volumes about the failure to capitalise on the availability of funds to give a boost to food processing and provide better prices to farmers for fruits and vegetables produced by them. The establishment of more food processing units can help prevent wastage of these perishable commodities and tap the markets to generate assured income and livelihood. The state’s having adequate infrastructure for the establishment of a cold chain from farm gate to food processing clusters is essential so that fruits and vegetables remain fresh until their arrival at the processing unit. Establishment of a cold chain can also ensure better price realisation for the growers of surplus raw fruits and vegetables not required by food processing units. The Pradhan Mantri Kisan Sampada Yojana, the umbrella scheme of the MoFPI that is aimed at providing incentives for the creation of preservation and processing infrastructure, includes the component of integrated cold chain and value addition infrastructure, but no fund was allocated to the state under this component. Assam, however, has developed 39 cold storages with a total capacity of 1.78 lakh MT. In sharp contrast, Bihar, on the other hand, has developed 311 cold storages with a total capacity of 14.79 lakh MT, while West Bengal has developed 514 cold storages with a capacity of 59.47 lakh MT. Uttar Pradesh has developed 2406 cold storages with 147 lakh MT capacity, which shows where Assam stands and why the state continues to depend on the supply of fruits and vegetables from states like Bihar, West Bengal, and Uttar Pradesh to meet its demand. Ironically, the scheme for integrated cold chains and value addition was launched in 2008. Revised guidelines issued under the scheme last year state that such an integrated cold chain can be established by individuals as well as by farmer producers’ organisations, farmer producers’ companies, self-help groups, public sector undertakings, firms or companies with business interests in cold chain, and also those engaged in supply chain management. The project components of the scheme include farm-level infrastructure, processing centres, a distribution hub with multi-temperature, multi-product cold storage, refrigerated trucks and vans, insulated vans, mobile insulated tankers, and an irradiation facility. Improvements in road, railway, and air connectivity have created opportunities for faster movement of agri-horticultural produce to food processing clusters in the state. Leveraging the scheme can help augment its cold storage infrastructure to cater to a larger volume of production and ensure backward and forward linkages to agri-horticultural growth centres as well as allied sectors such as livestock and dairy farming. Spectacular growth in tourism in the state has also triggered growth in the hospitality industry, which requires a steady supply of raw and quality processed foods to cater to growing food demand in hotels, restaurants, home stays, tourist lodges, and resorts. With cross-border connectivity projects with neighbouring countries and ASEAN nations getting a fresh push, the tourism industry in the state is poised for accelerated growth in the coming years, which implies that demand for fruits, vegetables, dairy products, and processed food even in the state’s own market is poised for unprecedented growth apart from the creation of huge export opportunities. The sooner all stakeholders realise the potential and the gap in the food processing sector in the state, the better. Floodgates of opportunities in Assam’s food processing sector are waiting to be opened.