Postharvest losses contribute to food shortages and ongoing food insecurity. Value addition in each aspect of agricultural produce creates more quality and adequate demand for the products. However, the growing market demand for quality and consistency in supply requires resources and necessary technical skills. There is a poor linkage between Research and Development institutions and the agro-value addition industry. Shortage of postharvest and value addition technical specialists and inefficient knowledge transfer from research stations to extension services are some constraints for needed outreach activities. Effective extension and training play a vital role in building capacity along the value chain by encouraging proper postharvest activities. In this article, the current postharvest value addition challenges are discussed with a specific focus on Oman. Furthermore, the strategies to be undertaken to enhance value addition processing and the need for increased institutional capacity building and technology transfer to achieve sustainability are discussed. It was recommended that targeted involvement be aimed at for better support for agricultural value addition in Oman.