The recent advances in the field of image processing has become a powerful quantitative method in development of science and engineering. Image recognition is one of the foremost areas in computer vision, it yields high degree understanding through computers, one of the maximum crucial regions in recognition is object recognition that's the process of locating a specific object in an image or video surveillance. This paper presents the current state of image processing techniques to identify vegetables and fruits and its capabilities to improve hardware resources with the growing demands of the business industry. The proposed system can identify vegetables and fruits in a basket that are to be retailed and alert the authorities when a basket is going to be finished. The application is based on color and size comparison of the vegetables and fruits in a live video with a reference image and there by extract similar features by using neural network for identification. Baskets are marked with a colored line to indicate the level of the item. Particular level is identified through color identification and notify the responsible parties.