PM Formalisation of Micro Food Processing Enterprises Scheme (PMFME)

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PM Formalisation of Micro Food Processing Enterprises Scheme (PMFME) Blog Image


The Ministry Of Food Processing Industries recently informed that the PMFME scheme has received over 1,02,515 loan applications so far.

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