In a developing state like Assam, to meet different human needs the state must improve the food sector far more for an everincreasing population. Food processing industry is slowly and steadily becoming one of the major industries of our economy and it is widely accepted that the food processing sector is the most appropriate sector for creating jobs for rural poor. For that purpose, different aspects of industrial development of food sector including financing for food processing industries possess great importance in todays scenario. Though the food processing sector is considered to be a sunrise sector, yet the Indian food regulations policies implementation comprises of various loop holes. Food processing units in Assam have a greater potential to acquire the status with sustained efforts and with the increasing demand for processed food. The present study monitors the financing required for skill development in food processing units in Dibrugarh district of Assam and also monitors the various loopholes which stand as a hindrance in the development of the food processing industries in Assam.