Chitosan is a linear polysaccharide composed of randomly distributed β-(1-4)-linked D-glucosamine (deacetylated unit) and N-acetyl-D-glucosamine (acetylated unit). It has a number of commercial and possible biomedical uses. Chitosan is produced commercially by deacetylation of chitin. Chitin (C8H13O5N)n is a long-chain polymer of a N-acetylglucosamine, a derivative of glucose, and it is found in many places throughout the natural world. It is the main component of the cell walls of fungi, the exoskeletons of arthropods, such as crustaceans (like the crab, lobster and shrimp) and the insects, including ants, beetles and butterflies, the radula of mollusks and the beaks of the cephalopods, including squid and octopuses. The shrimp processing industry in India turns out more than 1.25 lakh tones of head and shell waste per annum. Until recently, it was creating enormous environmental pollution problems. Nearly 7,000 tonnes of chitin can be produced from the prawn shell which is thrown out as waste now. CIFT has developed a method for the extraction of chitin from shrimp shell waste The wet prawn shell collected from the peeling centers is initially converted in to chitin which is then converted to chitosan by a chemical process deacetylation. Then the alkali free dried and powdered chitosan can be bagged in polythene lined HDPE (high density polythene) woven sacks.