The present invention discloses a system and method for grading agricultural commodity comprising a moisture sensor, a grain apparatus, a conveyor belt driven by motor, a camera to take plurality of images of the agricultural commodity uniformly distributed on the conveyor belt, a communication device for transmitting information to a processor, which processes the image to ascertain the quality parameters of the agricultural commodity and compares with the standards used for grading, a user interface for displaying the information of grading and a printer to print the information of grading. Further, the moisture sensor provides the moisture reading of a sample of agricultural commodity put through the grain apparatus. Furthermore, the parameters are analyzed using image processing technique and compared with the Standard used for grading of the agricultural commodity to ascertain the grading. Additionally, the system can be integrated or several components at different places connected through network.