Source: PIB
Context
The Union Minister for Food Processing Industries celebrated the PMFME Scheme crossing 2 lakh credit-linked beneficiaries, marking a major milestone in the formalisation of India’s micro food processing sector.
About PMFME Scheme
- Launched: 29 June 2020
- Ministry: Ministry of Food Processing Industries (MoFPI)
- Type: Centrally Sponsored Scheme
- Duration: 2020–21 to 2025–26 (extended as per government decisions)
- Objective: To formalise and strengthen the unorganised micro food processing sector by improving access to credit, technology, branding, and markets.
Objectives
- Formalise unorganised micro food processing enterprises.
- Enhance competitiveness through technology upgradation.
- Improve access to institutional finance.
- Promote value addition and reduce post-harvest losses.
- Generate employment and increase farmers’ income.
Key Features
1. Credit-Linked Capital Subsidy
- 35% capital subsidy on eligible project cost.
- Maximum subsidy of ₹10 lakh per beneficiary.
2. One District One Product (ODOP)
- Every district identifies a specialised food product based on local resources.
- Promotes cluster-based development, branding and exports.
3. Support to SHGs
- Seed capital of ₹40,000 per SHG member.
- Helps purchase small equipment and working capital.
4. Common Infrastructure
- Grants to FPOs, Cooperatives and SHGs for:
- Processing units
- Storage facilities
- Packaging units
- Testing laboratories
- Grant up to 35% of project cost (subject to prescribed limits).
5. Branding & Marketing
- Financial assistance for:
- Branding
- Packaging
- Quality certification
- Marketing and digital promotion.
6. Capacity Building
- Training for entrepreneurs on:
- Food safety standards
- Business management
- Packaging
- Digital marketing
- Financial management
Funding Pattern
- General States: 60 : 40 (Centre : State)
- North Eastern & Himalayan States: 90 : 10
- Union Territories (without legislature): 100% Central funding
