Pradhan Mantri Micro Food Processing Enterprises Scheme (PMFME Scheme)

PMFME Scheme full form is the Pradhan Mantri Formalisation of Micro Food Processing Enterprises Scheme. It is a major initiative launched by the Ministry of Food Processing Industries on 29 June 2020 to strengthen the food processing sector in India and support small businesses engaged in food processing.

Pradhan Mantri Micro Food Processing Enterprises Scheme aims to help micro food processing enterprises in India become more competitive, organized, and financially strong. Many small food businesses operate in the informal sector without proper branding, marketing, or financial support. The PMFME scheme was introduced to address these challenges and promote the formalisation of these enterprises.

Under this food processing scheme in India, the government supports individual entrepreneurs, Farmer Producer Organizations (FPOs), Self Help Groups (SHGs), and cooperatives involved in food processing. The scheme also focuses on strengthening the food processing value chain in India by improving infrastructure, training, branding, and access to finance.

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Pradhan Mantri Micro Food Processing Enterprises Scheme Overview

The PM Formalisation of Micro Food Processing Enterprises Scheme was launched with the objective of improving the capabilities of small food processing units and linking them with organized supply chains.

Pradhan Mantri Micro Food Processing Enterprises Scheme has a total outlay of ₹10,000 crore for a period of five years (2020-21 to 2024-25). It aims to support around 2,00,000 micro food processing units in India through financial assistance and capacity building.

The funding pattern under the scheme is shared between the central and state governments:

• 60:40 ratio between the Central and State Governments
• 90:10 ratio for North Eastern and Himalayan States
• 60:40 ratio for Union Territories with legislature
• 100% funding by the Central Government for other Union Territories

Through this scheme, the government aims to promote the ODOP scheme food processing model, also known as the One District One Product Scheme, which focuses on developing food products unique to each district.

Pradhan Mantri Micro Food Processing Enterprises Scheme Objectives

The PMFME scheme objectives focus on strengthening the micro food processing industry and improving its competitiveness. The key objectives include:

1. Improving access to credit for micro food processing entrepreneurs, SHGs, FPOs, and cooperatives.
   
2. Formalising micro enterprises operating in the unorganized food processing sector.
   
3. Supporting 2,00,000 micro enterprises to transition into the formal economic system.
   
4. Strengthening branding and marketing of food products to connect with larger markets.
   
5. Providing common infrastructure such as processing facilities, storage, laboratories, packaging, and incubation centres.
   
6. Promoting research, training, and institutional support in the food processing sector.
   
7. Improving access to technical and professional support services for food entrepreneurs.
   

These objectives help promote food processing MSME support in India and encourage growth in rural and small-scale industries.

Pradhan Mantri Micro Food Processing Enterprises Scheme Benefits

The PMFME scheme benefits are designed to support different stakeholders involved in food processing. The scheme has four major components:

1. Support to individual and group micro-enterprises
   
2. Branding and marketing support
   
3. Strengthening of institutions
   
4. Project management framework
   

Credit-Linked Subsidy

One of the most important PMFME scheme subsidies is the credit-linked capital subsidy of 35% of the eligible project cost.

• Maximum subsidy per unit: ₹10 lakh
  
• Beneficiary contribution: Minimum 10% of the project cost
  
• Remaining amount: Bank loan
  

This financial support helps small entrepreneurs expand or modernize their businesses.

Support for FPOs and Cooperatives

Farmer Producer Organizations (FPOs) and producer cooperatives are also supported under the micro food entrepreneurs scheme. They receive:

• 35% grant with credit linkage
  
• Training and technical support
  
• Funding support as per scheme guidelines
  

Support for Self Help Groups (SHGs)

The scheme provides special benefits for self help groups food processing scheme initiatives. These include:

Seed Capital Assistance

• Up to ₹40,000 per SHG member
  
• Used for working capital and purchase of small tools
  
• Provided as a grant to the SHG federation and given to members as a loan
  

Credit-linked capital subsidy

• SHG members can also receive 35% subsidy up to ₹10 lakh for capital investment.
  

Training and Handholding Support

Resource persons from State Rural Livelihood Missions (SRLM) help SHGs with:

• Training
  
• Unit upgrades
  
• Preparation of project reports
  
• Technical support
  

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Common Infrastructure Support

The PMFME scheme implementation also includes funding for shared infrastructure that benefits multiple micro food processing units.

Examples of supported infrastructure include:

• Facilities for sorting, grading, and storage of agricultural produce
  
• Warehouse and cold storage near farm gates
  
• Common processing facilities for ODOP products
  
• Food incubation centres for training and production support
  

These facilities improve the efficiency of micro food processing units in India and help entrepreneurs scale their businesses.

Branding and Marketing Support

Branding and marketing are crucial for the success of food processing enterprises. Under the PMFME scheme, the government provides support for:

• Marketing training programs
  
• Developing product branding and packaging
  
• Creating common branding platforms
  
• Marketing tie-ups with retail chains and institutions
  
• Ensuring quality standards and product certification
  

This support helps entrepreneurs compete in national markets and strengthen the food processing value chain in India.

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PMFME Scheme Eligibility

The PMFME scheme eligibility covers various stakeholders involved in food processing. Eligible applicants include:

• Farmer Producer Organizations (FPOs)
  
• Self Help Groups (SHGs)
  
• Cooperatives
  
• Existing micro food processing entrepreneurs
  
• New units related to the ODOP scheme
  

Eligibility for Individual Micro Enterprises

To apply under the PM Formalisation of Micro Food Processing Enterprises Scheme, individuals must meet the following criteria:

• The unit should be an existing micro food processing enterprise.
  
• The enterprise should employ less than 10 workers.
  
• The business should preferably process products identified under the One District One Product scheme.
  
• The applicant must be above 18 years of age.
  
• The applicant must have at least an 8th standard education.
  
• Only one member per family can apply.
  
• The entrepreneur must be willing to contribute 10% of project cost and take a bank loan.
  

Land cost cannot be included in the project cost under the scheme.

PMFME Scheme Application Process

Entrepreneurs can apply for the scheme through the official PMFME portal.

Step 1: Registration

Visit the official website and select Applicant Login. New users must complete the Sign Up process by providing:

• Name
  
• Email ID
  
• Mobile number
  
• Address
  
• State and district
  
• Beneficiary type (Individual / Group / Common Infrastructure)
  

Step 2: Login

After registration, applicants receive login credentials via email and mobile notification.

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Step 3: Application Form

Applicants must fill the online form with details such as:

• Applicant information
  
• Existing enterprise details
  
• Proposed business details
  
• Financial information
  
• Lending bank details
  
• Required documents
  

Step 4: Submit Application

Once the form is completed and documents are uploaded, applicants can submit the form online. A confirmation message is generated after successful submission.

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