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PM Formalisation of Micro Food Processing Enterprises (PMFME) Scheme

Central Scheme (All India) MSME & Industry Application Mode: ONLINE Active
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Verified Scheme Data Profile

This profile has been independently compiled from official gazette notifications and verified web domains. Source Authority Link: pmfme.mofpi.gov.in Authority: Ministry of Food Processing Industries • State/Region: Central Scheme (All India) • Last Audited: 09 Sep 2026

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Centrally sponsored scheme providing 35% credit-linked subsidy up to ₹10 lakh for formalising micro food processing enterprises and supporting SHG/FPO capacity building.

Detailed Summary

Scheme Overview

The PM Formalisation of Micro Food Processing Enterprises (PMFME) Scheme is a Centrally Sponsored Scheme launched by the Ministry of Food Processing Industries (MoFPI) under the Aatmanirbhar Bharat Abhiyan. It aims to address the challenges faced by the 2.5 crore unorganised micro food processing units, which constitute 98% of the sector, by facilitating their formalisation, technology upgradation, and access to credit.

Key Components

  • Individual Micro Enterprises: Credit-linked capital subsidy at 35% of eligible project cost with a maximum ceiling of ₹10 lakh per unit for new or existing units.
  • SHG Support: Seed capital of ₹40,000 per member for working capital and small tools, provided through the State Rural Livelihood Missions (SRLMs).
  • FPO/Cooperative Support: Credit-linked grant at 35% for capital investment along the value chain.
  • Common Infrastructure: Support for common processing facilities, labs, warehouses, and cold storage under the cluster approach.
  • Branding & Marketing: Support for 10+ 'One District One Product' (ODOP) brands with 50% grant for marketing and branding.

Implementation Framework

The scheme operates on a 60:40 cost-sharing basis between Centre and States (90:10 for North Eastern and Himalayan States). Implementation is monitored through a dedicated PMFME portal with District Resource Persons (DRPs) facilitating handholding support for DPR preparation, FSSAI registration, and Udyam registration.

Key Benefits & Financial Assistance

Comparison Criteria Benefits
Key Benefits
  • Credit-linked capital subsidy at 35% of eligible project cost, maximum ₹10 lakh per enterprise for new or existing micro food processing units.
  • Seed capital of ₹40,000 per Self Help Group (SHG) member engaged in food processing for working capital and small tools.
  • Credit-linked grant at 35% of eligible project cost for Farmer Producer Organisations (FPOs), Cooperatives, and SHG Federations for capital investment.
  • Grant of 50% of expenditure (up to specified limits) for branding and marketing support under the One District One Product (ODOP) approach.
  • Financial assistance for common infrastructure including common processing facilities, incubation centres, and testing laboratories.
  • Capacity building through training, handholding support for Detailed Project Report (DPR) preparation, and assistance for FSSAI and Udyam registration.

Eligibility Criteria Profile

Comparison Criteria Eligibility
Minimum Age Limit 18 Years or above
Occupation Status Self-Employed, Farmer
Domicile State All India (Central Scheme)

Application Process Guide

  1. Portal Registration: Register on the official PMFME portal (pmfme.mofpi.gov.in) using mobile number and Aadhaar-based e-KYC.
  2. District Resource Person (DRP) Engagement: Contact the assigned DRP for handholding support in preparing the Detailed Project Report (DPR) and documentation.
  3. Application Submission: Fill the online application form on the portal, selecting the appropriate component (Individual, SHG, FPO, etc.) and uploading the DPR.
  4. Document Upload: Upload mandatory documents including Aadhaar, PAN, bank account details, land/rent proof, caste certificate (if applicable), and FSSAI registration proof.
  5. Verification & Recommendation: DRP and State Nodal Agency (SNA) verify the application, conduct site inspection, and recommend the case to the lending bank.
  6. Bank Appraisal & Sanction: Bank appraises the project, sanctions the loan, and submits the subsidy claim on the portal.
  7. Subsidy Release: Upon satisfactory completion of project and verification, the subsidy is released by the SNA to the bank for credit to the borrower's loan account.

Common FAQs regarding this Yojana

The maximum credit-linked capital subsidy for an individual micro enterprise is ₹10 lakh, calculated at 35% of the eligible project cost.

No, it is not mandatory. While ODOP-based units receive priority in selection and branding support, non-ODOP food processing units are also eligible for the 35% credit-linked subsidy.

Yes, existing micro food processing units registered under Udyam and FSSAI are eligible to apply for technology upgradation, capacity expansion, or formalisation support under the scheme.

The seed capital is released by the State Rural Livelihood Mission (SRLM) to the SHG's bank account, which then disburses it to the individual member for working capital and small tools.

The scheme has been approved for implementation during the 15th Finance Commission cycle (2021-22 to 2025-26). The current operational deadline for submission of applications is 31st March 2026, subject to budgetary allocation.

The DRP provides handholding support to the applicant for preparation of the Detailed Project Report (DPR), facilitates online application filing, assists in obtaining FSSAI/Udyam registrations, and coordinates with the bank and State Nodal Agency for verification.