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What is the PMFME Scheme?

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The Pradhan Mantri Formalisation of Micro Food Processing Enterprises (PMFME) Scheme is a flagship initiative by the Government of India, launched in June 2020 under the Atmanirbhar Bharat Abhiyan. It aims to support the unorganised micro food processing sector by providing financial, technical, and business assistance to individuals and groups involved in food processing. The scheme is implemented by the Ministry of Food Processing Industries (MoFPI) in collaboration with State and Union Territory governments.

Benefits

Credit-Linked Capital Subsidy

Seed Capital for SHGs

Support for Branding and Marketing

Training and Capacity Building

Common Infrastructure Development

Benefits of the PMFME Scheme

  1. Credit-Linked Capital Subsidy: 35% subsidy on the eligible project cost, or up to ₹10 lakh which ever is less.
  2. Seed Capital for SHGs: ₹40,000 per member for working capital and purchase of small tools.
  3. Support for Branding and Marketing: 50% support for branding and marketing expenses.
  4. Training and Capacity Building: Training programs for entrepreneurs to enhance their skills.
  5. Common Infrastructure Development: Assistance for setting up common infrastructure like processing units, warehouses, and cold storage.

Objectives of the PMFME Scheme

  • Formalisation of Micro Enterprises: Transitioning unorganised micro food processing units into the formal sector.
  • Enhancing Competitiveness: Improving the competitiveness of existing micro enterprises.
  • Support for Value Chain Development: Assisting Farmer Producer Organisations (FPOs), Self-Help Groups (SHGs), and Producer Cooperatives along their entire value chain.
  • Capacity Building: Providing training and capacity building to entrepreneurs and stakeholders.
  • Infrastructure Development: Developing common infrastructure for food processing units.

Eligibility Criteria

  • Age: Applicant should be above 18 years.
  • Educational Qualification: Minimum 8th standard pass.
  • Ownership: Must have ownership rights of the enterprise.
  • Family Norm: Only one person per family (self, spouse, and children) is eligible for financial assistance.
  • Existing Units: Must be an existing micro food processing unit in operation.
  • Experience: Engaged in food processing for at least three years.
  • Turnover: Minimum turnover of ₹1 crore for FPOs and cooperatives.
  • Project Cost: Project cost should not exceed the current turnover.
  • Internal Resources: Should have internal resources to meet 10% of the project cost and margin money for working capital.

Types of Support Available

  1. Support to Individual Units: Financial assistance for setting up or upgrading micro food processing units.
  2. Support to Groups: Assistance for setting up common infrastructure and value chain development.
  3. Seed Capital for SHGs: Financial support for SHG members engaged in food processing.
  4. Training and Capacity Building: Programs to enhance skills and knowledge of entrepreneurs.
  5. Branding and Marketing Support: Assistance for promoting and marketing processed food products.

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