This review paper presents the recent developments of image processing and machine vision system in an automated rice grading system. In agricultural field, the efficiency and accuracy in grading process is very essential to increase the productivity of the yield. Rice is cultivated in many regions across India. Rice is a staple food for about 65% of the Indians. There are more than 40,000 different varieties of rice which is cultivated in all continents except Antarctica. The food quality is becoming a major issue in health care. It is tedious for people to analyze the grades and quality in the market. The rice varieties and their quality are assessed through visual inspection by food quality Managers. The decision making capabilities of food quality Managers are subjected to an external influences. In this paper, image processing techniques are implemented to automate the process which overcomes the drawbacks of manual process. Here, various procedures are reviewed to obtain the percentage, quality of rice grains based on its size. © 2006-2016 Asian Research Publishing Network (ARPN).