PM Formalization of Micro Food Processing Enterprises (PMFME)
Why in News?
- The scheme is highly relevant due to its nearing completion of the current five-year cycle (2020–21 to 2025–26) and significant progress reports released by the Ministry of Food Processing Industries (MoFPI)
Key Features
- Objective: To transition 2 lakh micro-enterprises into the formal framework by providing financial, technical, and business support.
- Outlay & Funding: The scheme has a total outlay of ₹10,000 crore.
- Cost Sharing: 60:40 (Centre: State); 90:10 (NE & Himalayan States); 100% Central funding for UTs without legislature.
- Financial Assistance:
- Individual Units: Credit-linked capital subsidy of 35% of the project cost, with a maximum ceiling of ₹10 lakh.
- Seed Capital for SHGs: ₹40,000 per member for working capital and small tools.
- Common Infrastructure: 35% credit-linked capital subsidy (up to ₹3 crore) for FPOs, Cooperatives, and SHGs.
- One District One Product (ODOP): Adopts a cluster-based approach across 726 districts, identifying 137 unique products (e.g., mango, turmeric, millet-based items) to leverage scale in procurement and marketing.
- Branding & Marketing: Offers a 50% grant for branding and marketing initiatives to promote regional products.
- Eligibility:
- Existing micro-units, FPOs, SHGs, and cooperatives are eligible.
- Individual applicants must be at least 18 years old and have passed at least the 8th standard.
- Only one person per family is eligible.
- Capacity Building: Training and handholding support provided through institutions like NIFTEM and IIFPT.
