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PMFME Scheme

PMFME Scheme Overview

PMFME (Pradhan Mantri Formalisation of Micro Food Processing Enterprises) is an initiative launched by the Ministry of Food Processing Industries (MoFPI) under the Aatmanirbhar Bharat Abhiyan. The scheme, which started in 2020, aims to formalise India's micro food processing units, especially those operating in the unorganised sector, and promote the growth of agri-food enterprises. It is designed to enhance the scale, efficiency, and quality of these enterprises, contributing to the development of the food processing sector in India.

Key Objectives of PMFME Scheme

  • Support the formalisation of micro food processing enterprises in India.
  • Promote the growth of Farmer Producer Organisations (FPOs), Self-Help Groups (SHGs), and cooperatives in food processing.
  • Improve the infrastructure and quality of food processing units.
  • Enhance skill development and capacity building among food entrepreneurs.
  • Integrate small-scale enterprises into organised supply chains for better market reach and scalability.

    • PMFME Scheme Funding & Outlay

    The total outlay of the PMFME scheme is ₹10,000 crores for a 5-year period (2020-2025). The funding will be shared between the central and state governments:

  • General States: Central Government (60%) and State Government (40%)
  • North-Eastern and Himalayan States: Central Government (90%) and State Government (10%)

    • This financial assistance aims to create a sustainable and competitive food processing sector in India.

    One District One Product (ODOP)

    The PMFME scheme promotes the **One District One Product (ODOP)** approach to encourage the growth of local food processing industries. Under this initiative, each district in India identifies one product that is predominantly produced in that region, and the scheme supports the development of that product. This will help boost the production scale, marketing, and value chain of local products.

    Examples of ODOP products include:

  • Agricultural Products: Tomato, Litchi, Mango, Millet, Potatoes, etc.
  • Animal Products: Poultry, Fish, Meat, Animal Feed
  • Traditional Herbal Products: Turmeric, Amla, Honey, and other forest-based products.

    • The ODOP approach also focuses on improving the branding, marketing, and packaging of these products to ensure better visibility in domestic and international markets.

    Subsidies and Financial Assistance under PMFME

    The PMFME scheme provides a range of financial benefits and subsidies to eligible applicants to help them upgrade or set up new food processing units:

  • Credit-Linked Capital Subsidy: 35% subsidy on the eligible project cost (up to ₹10 crore) for upgrading or setting up new units. The maximum subsidy amount is ₹3 crore for SHGs, FPOs, and cooperatives.
  • Support for Branding and Marketing: 50% subsidy for branding, packaging, and marketing of products.
  • Seed Capital for SHGs: ₹40,000 per member (up to ₹4 lakh per SHG) for purchasing tools and working capital.
  • Credit-Linked Capital for Individuals: 35% subsidy on project cost, with a maximum of ₹10 lakh per unit for individuals, FPOs, NGOs, cooperatives, etc.

    • These financial incentives aim to reduce the initial investment burden and ensure the growth of food processing units.

    Benefits of the PMFME Scheme

  • Support for Micro Enterprises: PMFME scheme aims to cover approximately 2 lakh micro food processing units, providing them with credit-linked subsidies.
  • Capacity Building: Entrepreneurs will receive training in technical, business, and marketing aspects to enhance their skills.
  • Market Linkages: The scheme facilitates the integration of micro units into organized supply chains, boosting their reach and marketability.
  • Formalization of Enterprises: Helps micro units to become formal businesses and comply with regulatory frameworks.
  • Improvement in Quality and Productivity: Financial assistance is provided to enhance infrastructure, quality control, and food safety standards.

    • How to Apply for PMFME Scheme

    To apply for the PMFME scheme, follow these steps:

  • Step 1: Register on the PMFME portal by providing basic details such as your name, mobile number, email ID, and address.
  • Step 2: After registration, you will receive login credentials in your email. Use these credentials to access the portal.
  • Step 3: Complete the Detailed Project Report (DPR) by providing information about the applicant, business, finances, and lending bank.
  • Step 4: Upload all necessary documents required for the application process.
  • Step 5: Submit the application after verifying the details and ensuring the information is correct.

    • Visit the official PMFME Portal to start the application process and check the full guidelines and documentation.

    PMFME Scheme Assistance?

    We provide expert guidance and support to help you access and benefit from the PMFME scheme, empowering your micro-enterprise with the resources needed for growth and sustainability.

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