Pradhan Mantri Formalisation of Micro Food Processing Enterprises Scheme

Pradhan Mantri Formalisation of Micro Food Processing Enterprises (PMFME) Scheme Latest News

Bihar secured first position in the country for successfully implementing the Pradhan Mantri Formalisation of Micro Food Processing Enterprises(PMFME) scheme in the financial year 2024-25, said the industries minister recently.

About Pradhan Mantri Formalisation of Micro Food Processing Enterprises (PMFME) Scheme

• Launched on June 29, 2020, PMFMPE is a Centrally Sponsored Scheme by the Ministry of Food Processing Industries.
• It is designed to address the challenges faced by micro-enterprises and to tap the potential of groups and cooperatives to support the upgradation and formalization of these enterprises.
• Objectives: To build the capability of microenterprises to enable:
  • Increased access to credit by existing micro food processing entrepreneurs, FPOs, self-help groups, and co-operatives.
  • Integration with an organized supply chain by strengthening branding & marketing.
  • Support for the transition of existing 200,000 enterprises into a formal framework.
  • Increased access to common services like common processing facilities, laboratories, storage, packaging, marketing, and incubation services.
  • Strengthening of institutions, research, and training in the food processing sector; and
  • Increased access for enterprises to professional and technical support.
• Outlay:
  • The scheme envisages an outlay of ₹ 10,000 crores over a period of five years from 2020-21 to 2024-25.
  • The expenditure under the scheme would be shared in a 60:40 ratio between Central and State Governments, in a 90:10 ratio with the Northeastern and the Himalayan States, a 60:40 ratio with UTs with the legislature, and 100% by the Center for other UTs.
• Coverage:
  • Under the scheme, 2,00,000 micro food processing units will be directly assisted with credit-linked subsidies.
  • Adequate, supportive common infrastructure and institutional architecture will be supported to accelerate the growth of the sector.
• Benefits: The program has four broad components addressing the needs of the sector:
  • Support to individuals and groups of micro-enterprises.
  • Branding and Marketing support.
  • Support the strengthening of institutions.
  • Setting up a robust project management framework.
• Financial Support:
  • Support to Individual micro units:
    • Micro enterprises will get credit-linked subsidy @ 35% of the eligible project cost with a ceiling of Rs.10 lakh.
    • Beneficiary contribution will be a minimum 10% and balance from the loan.
    • On-site skill training & Handholding for DPR and technical upgradation.
  • Support to FPOs/SHGs/Cooperatives:
    • Seed capital will be given to SHGs (@Rs. 4 lakh per SHG) for loans to members for working capital and small tools.
    • Credit linked capital subsidy @35% subject to a maximum of Rs. 3 crore, to support FPOs, SHGs, Cooperatives, and any Government agency for setting up common infrastructure. 
    • Grant upto 50% for Branding and Marketing to groups of FPOs/ SHGs/ Cooperatives or an SPV of micro food processing enterprises.
    • Skill training & Handholding support.
    • Credit linked capital subsidy
• The Eligible Borrowers for PMFMPE can be:
  • Farmer Producer Organization (FPO)
  • Self-Help Groups
  • Co-operatives
  • Existing Micro Food Processing Entrepreneurs
  • New Units, whether for individuals or groups, would only be supported for One District One Product (ODOP).

Pradhan Mantri Formalisation of Micro Food Processing Enterprises (PMFME) Scheme FAQs

Q1: What is Pradhan Mantri Formalisation of Micro food enterprises Scheme?

Ans: It is a Centrally Sponsored Scheme by the Ministry of Food Processing Industries, designed to address the challenges faced by the micro-enterprises.

Q2: What is the financial support provided to individual micro food processing units under PMFME?

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Ans: Credit-linked subsidy of 35% of the project cost

Q3: What is the maximum subsidy limit for individual micro food processing units under the PMFME Scheme?

Ans: ₹ 10 lakh

Source: TOI