Pradhan Mantri Formalisation of Micro Food Processing Enterprises (PMFME) Scheme
About
- The PMFME Scheme, launched by the Ministry of Food Processing Industries under Aatmanirbhar Bharat Abhiyan, supports the formalization and competitiveness of micro food processing units through financial, technical, and business aid.
- It operates from 2020-21 to 2025-26 with a total outlay of Rs. 10,000 crore, targeting 2 lakh micro-enterprises via credit-linked subsidies and infrastructure development.​
- Individual micro-units receive 35% credit-linked subsidy up to Rs. 10 lakh (10% beneficiary contribution).
- SHGs get Rs. 4 lakh seed capital per group; FPOs/SHGs/cooperatives eligible for up to Rs. 3 crore for infrastructure.
- 50% grants for branding/marketing to groups or SPVs. Funding shared 60:40 (Centre:States), with variations for special regions.​
Objectives
- Enhance access to credit for micro-entrepreneurs, FPOs, SHGs, and cooperatives.
- Promote integration into organized supply chains through branding, marketing, and common infrastructure like processing facilities and incubation centers.
- Facilitate transition to formal frameworks with GST/FSSAI compliance, skill training, and ODOP (One District One Product) focus.​
Key Achievements
- 1,62,744 loans sanctioned under credit-linked subsidy for individual micro enterprises, SHGs, FPOs, and others.​
- Seed capital approved for 3,65,935 Self-Help Group (SHG) members at ₹40,000 per member, up to ₹4 lakh per SHG federation.​
- 101 proposals sanctioned for Common Infrastructure Facilities with credit-linked subsidy up to ₹3 crore per project.​
- 76 incubation centres approved to aid enterprise development and technology adoption.​
- 27 proposals sanctioned under Branding and Marketing support, providing up to 50% grant for groups like FPOs, SHGs, and cooperatives.​
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