The Government of Karnataka considers high growth of agriculture and allied sector and ensuring food security as foremost focus areas of its policies. In Karnataka, the performance of agriculture and allied sector has been a major concern as the growth rates of agricultural sector are highly varying and are often negative. With the enormous rural migration to urban area witnessed in the recent years and NREGA, labour shortage in agriculture has become acute and costs have increased significantly. Mechanization has been increasingly seen as the sole alternative to continue agriculture for many crops. However, the small size of holding and fragmentation has been major challenges to go for mechanization and addressing these issues is becoming critical to the survival of many farms. It is in this context, agri- business policies are being framed in Karnataka to address the key concerns, agricultural growth, and processing and food security.