India is an agrarian economy where more than 70% of the population largely depends on agricultural and allied activities for its livelihood. Despite this, Indian farmers are in very poor socioeconomic condition. They are in low income equilibrium trap. U.P. has a comparative advantage in natural cultivation. U.P. has a strong potential for growing into a strong base of the food processing industry. This review paper focused on categorizing various activities related to food processing in U.P. with the aim of developing the present conditions of farmers and enhancing their economic contribution in national gross domestic product. We concluded that for breaking the low-income equilibrium trap, there is an urgent need of developing entrepreneurial skills amongst farmers and promoting micro agri-entrepreneurship in Uttar Pradesh.