PM Formalisation of Micro Food Processing Enterprises Scheme (PMFME)

About PM Formalisation of Micro Food Processing Enterprises Scheme (PMFME):

• It is a centrally sponsored scheme launched in 2020 with an outlay of Rs.10,000 crore.
• Nodal Ministry: Ministry of Food Processing Industries.
• Duration: It will be implemented over a 5-year period from 2020-21 to 2024-25.
• Fund Sharing: The expenditure under the scheme would be shared in a 60:40 ratio between Central and State Governments, a 90:10 ratio with North Eastern and Himalayan States, a 60:40 ratio with UTs with legislature, and 100% by Centre for other UTs.
• Objectives: 
  • Formalization of micro units by means of GST, Udyog Aadhar, and FSSAI registrations.
  • Financial assistance to individual units for the upgradation of food processing facilities.
  • Quality improvement and skill development through training and technical knowledge.
  • Financial assistance to Farmer Producer Organizations (FPOs), Self Help Groups (SHGs), and producer’s cooperatives for setting up common infrastructure facilities.
  • Branding and marketing support to FPOs, SHGs, and producer cooperatives.
  • Support and assistance in availing bank loans and preparation of detailed project reports (DPR)
• Financial Support:
  • Support to Individual micro-units:
    • Micro enterprises will get credit linked subsidy at 35% of the eligible project cost with a ceiling of Rs.10 lakh.
    • The beneficiary contribution will be minimum of 10% and the balance from the loan.
  • Support to FPOs/SHGs/Cooperatives:
    • Seed capital will be given to SHGs ( at Rs. 4 lacks per SHG) for loans to members for working capital and small tools.
    • Grant for backward/ forward linkages, common infrastructure, packaging, marketing & branding.

Q1) What are Farmer Producer Organizations (FPOs)?

A Farmer Producer Organization (FPO) is a type of Producer Organisation (PO) where farmers are its members. The PO is an organisation of any produce, such as non-farm products, agricultural, artisan products, etc., by producers. The Small Farmers’ Agribusiness Consortium (SFAC) provides support for FPOs promotion.

Source: Govt’s PMFME scheme for micro food processing units sanctions over 25,000 loans

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