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Gum arabic is used as an encapsulating agent because of its film-forming ability. However, India has to import gum arabic for its domestic requirement. Oxidised starch has been reported as a substitute for gum arabic but no data are reported on the exact conditions of oxidation of starch or the analytical indicators for determining the suitability of the product for such a purpose. This work reports on the effect of process conditions for oxidation of corn and waxy amaranth starch with film-forming ability as the major criterion. The process was followed using the analytical indicators of oxidation such as carboxyl content, chlorine consumption and ferricyanide number.