The majority of the waste produced by the food and agriculture industries is abundant in proteins, carbohydrates, and fats, which can be utilized effectively in other food products or industrial products. Especially, washed rice water (WRW) contains a significant quantity of starch that has been discarded without being utilized properly. In the present investigation, we have successfully upgraded washed rice water into the industrially important intermediate, i.e., gluconic acid, using an Au/MgO catalyst in a single pot reaction. The upgrading strategy was developed in three consecutive phases using two different model reactions: (1) glucose to gluconic acid, (2) hydrolysis of starch into glucose, followed by the oxidation reaction. The results showed that almost 60% gluconic acid was achieved at room temperature with atmospheric pressure. The present investigation highlighted that hydrolysis, followed by oxidation reaction is the most promising route for upgrading WRW to gluconic acid.