
Introduction
The Indian food processing industry is a diverse sector encompassing many food products. With approximately 2.5 million food processing units in India’s unorganized sector, it contributes to 74% of employment in this field. However, these unorganized units face numerous challenges that hinder their growth. To address these issues, the Government of India, through the Ministry of Food Processing Industries (MoFPI), launched the PMFME Scheme. Here, we provide a comprehensive overview of the PMFME scheme, including its full form, benefits, eligibility, and essential details.
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What is the PMFME Scheme?
The PMFME, or Pradhan Mantri Formalisation of Micro Food Processing Enterprises Scheme, is a strategic initiative to organise India’s vast food processing sector. Managed by the Ministry of Food Processing, this scheme aligns with the “Vocal for Local” movement under the Atmanirbhar Bharat Abhiyaan. Launched in 2020 and extending to 2025, it focuses on scaling up micro-enterprises in the unorganized segment, with a particular emphasis on Farmer Producer Organizations (FPOs), cooperatives, and Self-Help Groups (SHGs) in agriculture and food processing.
This centrally sponsored scheme will outlay INR 10,000 crores for five years, shared by the central and state governments at a 60:40 ratio and 90:10 for North-Eastern and Himalayan states.
One District One Product (ODOP) Approach Under PMFME Scheme
A unique feature of the PMFME scheme is its adoption of the One District One Product (ODOP) approach, which aims to enhance the efficiency of resource procurement, services, and product marketing. Under ODOP, each district will identify and promote a signature food product, a local crop, or a value-added item unique to the region, such as tomatoes, millet-based goods, mangoes, or traditional herbal items like turmeric and amla. ODOP provides the framework for developing supply chains, infrastructure, branding, and marketing, strengthening local economies and traditional products.
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Key Components of the PMFME Scheme
The PMFME scheme addresses several critical areas in the food processing sector:
Common Infrastructure Development
The scheme supports FPOs, SHGs, cooperatives, private enterprises, and government agencies in developing shared infrastructure, such as incubation centres, cold storage, warehouses, and laboratories. It also provides a credit-linked capital subsidy to assist in capital investments.
Branding and Marketing Support
This scheme allows FPOs, cooperatives, SHGs, and micro-food processing enterprises to access branding and marketing support. This assistance includes packaging, quality control, and food safety standardization. Organizations like NAFED and TRIFED are tasked with executing these initiatives. States can provide up to INR 5 lakh to create Detailed Project Reports (DPRs) for marketing and branding proposals.
Capacity Building and Research
Training and skill development are prioritized to help micro-units transition from the unorganized to the organized sector. Institutions such as the National Institute for Food Technology Entrepreneurship and Management (NIFTEM) and the Indian Institute of Food Processing Technology (IIFPT) oversee training programs at both national and state levels.
Support for Micro Food Processing Units
Microfood processing units and SHGs involved in food processing are eligible for subsidies for facility expansion and technological upgrades.
Seed Capital for SHGs
The scheme provides seed capital to SHG members engaged in food processing. This capital is offered at the federation level and distributed as loans to members for purchasing tools and working capital.
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PMFME Scheme Subsidy Details
The PMFME scheme offers substantial financial support, including:
- Capital Subsidy: 35% of the project cost, up to INR 10 lakh per unit for common infrastructure, with an additional INR 3 crore limit for SHGs, FPOs, and cooperatives.
- Branding and Marketing: Support covering up to 50% of expenses.
- Seed Capital: Up to INR 40,000 per SHG member for tools and working capital.
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PMFME Scheme Benefits
The PMFME scheme provides significant benefits to approximately 200,000 micro food processing units:
- Access to credit-linked subsidies and financial assistance for modernizing food processing facilities.
- Capacity-building support through skill development, technical training, and support services.
- Enhanced market access by integrating small enterprises into organized supply chains.
- Support for transitioning informal units into formal enterprises through regulatory compliance and registration.
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Eligibility for the PMFME Scheme
Eligibility for the PMFME scheme varies based on the type of assistance sought:
- Common Infrastructure: FPOs, SHGs, and cooperatives that have processed ODOP products for at least three years and have a minimum turnover of INR 1 crore.
- Branding and Marketing: Projects should focus on ODOP, with a minimum product turnover of INR 5 crore and a consumer-ready retail pack.
- Capacity Building: Open to individual and group units receiving support for capital investments.
- Support to Units: Existing micro food processing units and SHG members actively engaged in food processing.
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Application Process for PMFME Scheme
You can apply for the PMFME scheme online or offline:
- Visit the official PMFME website.
- Register as an applicant by filling in the required information.
- After registration, login and choose the ‘Apply Online’ option to complete the application.
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FAQs for the PMFME Scheme
What is the PMFME scheme?
Ans. The PMFME scheme, or Pradhan Mantri Formalisation of Micro Food Processing Enterprises, provides technical, business, and financial support to unorganized micro food processing units.
Who is eligible for the PMFME Scheme?
Ans. Eligible entities include FPOs, SHGs, existing micro food processing entrepreneurs, and cooperatives.
What benefits does the PMFME scheme offer?
Ans. The scheme supports unorganized micro-units in branding, marketing, and packaging and provides capacity building through technical training.
What products are covered under the PMFME Scheme?
Ans. Products under the scheme include regional specialties like millet flour, honey, jaggery, and various other processed foods.
What is the PMFME budget?
Ans. The scheme’s total budget is INR 10,000 crore, covering 2020 to 2025.
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