The Government of India consistently introduces various schemes to support small and medium-sized enterprises (SMEs). One of the most significant initiatives is the PMFME Scheme, launched by the Ministry of Food Processing Industries (MoFPI) in 2020 as part of the larger Aatmanirbhar Bharat Abhiyan.
This scheme is specially designed to empower micro, small, and medium-sized food processing enterprises by offering financial assistance, technical support, and business development resources. PMFME is a key pillar of India’s self-reliance mission and aims to improve the sustainability, quality, and competitiveness of food processing businesses.
The scheme is being implemented for five years, from 2020–21 to 2024–25, and provides wide-ranging benefits for eligible entrepreneurs.
If you are a food processor planning to expand or formalize your business, the PMFME scheme can help you access loans, subsidies, training, and market support through the official PMFME portal.
PMFME Scheme Details
PMFME stands for Pradhan Mantri Formalisation of Micro Food Processing Enterprises. It is a centrally sponsored scheme aimed at bringing unorganized food processing units into the formal economy.
Launched by the Ministry of Food Processing Industries (MoFPI) under the Atmanirbhar Bharat Abhiyan, the scheme also supports the government’s “Vocal for Local” initiative by promoting local products and entrepreneurs.
PMFME Scheme Overview
Scheme Timeline and Objective
- Launched: 2020
- Valid till: 2024–25
- Total Outlay: ₹10,000 crore over 5 years
Funding Pattern:
- 60:40 between Centre and States
- 90:10 for North-Eastern and Himalayan states
Main Objectives:
- Formalize micro food processing units
- Support FPOs, SHGs, and cooperatives
- Improve food safety, quality, and branding
- Generate employment in rural areas
One District One Product (ODOP)
Under PMFME, the One District One Product (ODOP) approach is followed. Each district focuses on one unique agricultural or food product for development and promotion.
This helps in:
- Bulk production and procurement
- Better processing infrastructure
- Strong branding and marketing
- Export opportunities
Examples of ODOP products:
- Tomatoes, potatoes, mangoes, litchi
- Millets, fishery, poultry, meat
- Turmeric, amla, honey
- Spices, pulses, oilseeds
Benefits Under PMFME Scheme
- Credit-linked subsidy up to 35% of project cost
- Maximum subsidy: ₹10 lakh per unit
- Support for branding and marketing
- Training and skill development programs
- Infrastructure and common facility centers
- Technical and handholding support
Industry Categories & Eligible Enterprises
The following food processing activities are commonly supported under PMFME:
- Pickle Manufacturing
- Bread Manufacturing
- Chips Manufacturing
- Fruit Juice Manufacturing
- Namkeen & Snacks
- Sattu Manufacturing
- Papad Manufacturing
- French Fries
- Chilli Powder
- Noodles Manufacturing
- Sugar Candy
- Sauce Manufacturing
- Sparkling Water
- Ice Cream
- Milk Processing
- Fish Feed
- Carbonated Drinks
- Pasta & Noodles
- Coriander Powder
- Sweets Manufacturing
- Tilkut (Sesame Sweet)
- Chutney
- Snack Foods
- Sabudana
- Vermicelli
- Dal Processing
- Jaggery
- Turmeric
- Garam Masala
- Upma Mix
- Dry Fruits
- Rice Mill
- Cake Manufacturing
- Ghee
- Poultry Feed
- Flour Mill
- Home-Based Food Units
- Onion & Garlic Processing
- Chocolate
- Oil Mill
- Tomato Puree
- Ice Candy
- Soy Paneer
- Mushroom
- Makhana
- Tomato Ketchup
- Toast
- Animal Feed
- Ginger-Garlic Paste
- Spice Mix
- Sweet Corn
- Sugar Processing
- Puffed Rice
- Biscuits
- Jam and Jelly
Who Can Apply
- Individual micro food processing units
- Farmer Producer Organizations (FPOs)
- Self Help Groups (SHGs)
- Cooperatives
- Small entrepreneurs in food processing
How to Apply
- Visit the official PMFME portal
- Register as an entrepreneur
- Fill the application form
- Upload required documents
- Submit project proposal
- Track application status online
Conclusion
The PMFME Scheme is a powerful government initiative aimed at strengthening India’s micro food processing sector. By providing financial support, training, and market access, it helps small food entrepreneurs grow, modernize, and compete in the formal economy.
If you are running or planning to start a food processing business, PMFME can be your gateway to funding, skills, and long-term success under India’s Atmanirbhar Bharat vision.