Diabetic Retinopathy is a major cause for blindness, identified early by the formation of exudates in the retina. The conventional method followed by opthalmogists is the regular supervision of the retina. As this method takes time and energy of the opthalmogists, a new feature based classification for the detection of exudates in color fundus image is proposed in this study. This method reduces the professionals work to examine on every fundus image rather than only on abnormal image. The exudates are separated from the fundus image by thresholding and removal of optic disk using morphological operation and connected component analysis. The features are extracted from processed image and fuzzy technique is used for classification of images as exudates and non-exudates.