PM Formalisation of Micro food processing Enterprises (PMFME) Scheme

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As part of Atmanirbhar Bharat Abhiyan, Ministry of Food Processing Industries (MoFPI) is implementing a centrally sponsored "PM Formalisation of Micro food processing Enterprises (PMFME) Scheme.

About PM Formalisation of Micro food processing Enterprises (PMFME) Scheme

  • It is a centrally sponsored scheme launched in 2020.
  • Duration: The scheme is operational for a period of five years from 2020-21 to 2024-25 with an outlay of Rs. 10,000 Crore for supporting 2 lakh micro food processing enterprises.
  • Funding
    • 90:10 ratios with North Eastern and Himalayan States.
    • 60:40 ratios with UTs with legislature, and 100% by Centre for other UTs.
    • 60:40 ratios between Central and State Governments for other states.
  • Objectives: The objectives of scheme are to build capability of microenterprises to enable:
    • Increased access to credit by existing micro food processing entrepreneurs, FPOs, Self Help Groups and Co-operatives;
    • Integration with organized supply chain by strengthening branding & marketing;
    • Support for transition of existing 2,00,000 enterprises into formal framework;
    • Increased access to common services like common processing facility, laboratories, storage, packaging, marketing and incubation services;
    • Strengthening of institutions, research and training in the food processing sector;
    • Increased access for the enterprises, to professional and technical support.
  • Under this scheme 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 a 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.
  • Nodal Ministry: Ministry of Food Processing Industries.

Q1) What are Farmer Producer Organizations?

The concept behind Farmer Producer Organizations is that farmers, who are the producers of agricultural products, can form groups. To facilitate this process, the Small Farmers’ Agribusiness Consortium (SFAC) was mandated by the Department of Agriculture and Cooperation, Ministry of Agriculture, Govt. of India, to support the State Governments in the formation of Farmer Producer Organizations (FPOs).

Source: "PM Formalisation of Micro food processing Enterprises (PMFME) Scheme" launched under the Atmanirbhar Bharat Abhiyan with an outlay of Rs. 10,000 Crore supports 2 lakh micro food processing enterprises following One District One Product (ODOP) approach