PM Formalisation of Micro food processing Enterprises Scheme ( PMFME)

Support to Individual Micro Enterprises: Credit‑linked capital subsidy of 35% of eligible project cost (maximum ceiling Rs.10.0 lakh per unit) with beneficiary minimum contribution of 10% and the balance financed by a bank loan.

The PM Formalisation of Micro Food Processing Enterprises Scheme (PM FME Scheme) is a centrally sponsored scheme launched under the Aatmanirbhar Bharat Abhiyan by the Ministry of Food Processing Industries (MoFPI).

The scheme aims to address the challenges faced by unorganized micro food processing enterprises by providing a package of financial, technical, and institutional support.

It focuses on formalization, capacity building, technology upgradation, access to credit, and strengthening branding and marketing through a One District One Product (ODOP) approach, covering 2 lakh micro food processing enterprises across the country.

PM Formalisation of Micro food processing Enterprises Scheme ( PMFME) Objective Image

Objectives

To build the capacity of micro food processing entrepreneurs through technical knowledge, skill training, and handholding support services.
To increase access to institutional credit for existing micro food processing enterprises for technology upgradation.
To provide support to Farmer Producer Organizations (FPOs), Self Help Groups (SHGs), Producer Cooperatives, and Cooperative Societies along the entire value chain to enable micro enterprises to avail common services.
To support the transition of existing micro food processing enterprises into the formal framework for registration under regulatory systems and compliance.
To integrate micro food processing enterprises with organized supply chains by strengthening branding and marketing support.

Benefits

Support to Groups (FPOs/SHGs/Cooperatives): Credit‑linked capital grant of 35% with prescribed maximum limits, plus seed capital of Rs.40,000 per SHG member (provided as a grant to the SHG federation which lends to members) and training/handholding support for upgradation and DPR preparation.
Support for Common Infrastructure: Credit‑linked grant of 35% available to FPOs, SHGs, cooperatives, government agencies or private enterprises for infrastructure such as assaying/sorting/grading/storage premises, common processing facilities for ODOP produce, and incubation centres.
Branding and Marketing Support: Grant support up to 50% of total expenditure (subject to prescribed maximum limits) for training, development of common brands and packaging (including standardization) and marketing tie‑ups with retail chains and state‑level institutions.

PM Formalisation of Micro food processing Enterprises Scheme ( PMFME) Benefit Image

Eligibility

Individual applicants must be existing micro food processing units, be above 18 years of age, possess at least VIII standard educational qualification, and only one member per family is eligible for financial assistance.
SHGs, FPOs, and Producer Cooperatives must be engaged in processing of ODOP products, have sufficient internal resources to meet minimum contribution requirements, and comply with turnover and project cost conditions as specified.
Seed capital assistance is available only to SHG members currently engaged in food processing activities.
Preference is given to enterprises producing products identified under the One District One Product (ODOP) approach, though other products may also be supported as per scheme guidelines.

How to Apply?

Applications are invited on an ongoing basis at the district level.

Eligible micro food processing units, SHGs, FPOs, or cooperatives must apply through the PM FME online portal.

Applications are examined with the assistance of District Resource Persons.

Applications are scrutinized by the District Level Committee or the State Nodal Agency.

Approved proposals are recommended to banks for sanctioning loans.

Grants from the Central and State Governments are released through the lending bank after loan sanction, as per the prescribed funding pattern.

For marketing, branding, and common infrastructure support, Detailed Project Reports (DPRs) are submitted to the State Nodal Agency for appraisal and approval as per the scheme procedure.

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