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Central Govtschemes

PM Formalisation of Micro Food Processing Enterprises (PMFME)

35% credit-linked subsidy up to Rs 10 lakh for micro food processing units, plus seed capital for SHG members.

About this scheme

PMFME was launched in June 2020 by the Ministry of Food Processing Industries with an outlay of Rs 10,000 crore, and has been extended. It follows the One District One Product approach, upgrading about 2 lakh existing micro food processing enterprises. Support covers individual units, SHGs, FPOs and cooperatives, along with common infrastructure such as incubation centres, common processing facilities and warehousing. It also funds branding and marketing support for groups and free training and technical handholding through District Resource Persons.

Benefits

  • 35% credit-linked capital subsidy, capped at Rs 10 lakh per unit
  • Seed capital of Rs 40,000 per SHG member for working capital and small tools
  • 35% grant up to Rs 3 crore for common infrastructure for FPOs, SHGs and cooperatives
  • 50% grant for branding and marketing to groups of micro units
  • Free training, DPR preparation and handholding through District Resource Persons

Who can apply

  • Existing individual micro food processing enterprises
  • Applicant must be 18 years or older with at least class 8 education
  • Ownership right over the enterprise; only one person per family is eligible
  • SHGs, FPOs, cooperatives and producer organisations in food processing
  • Beneficiary contributes at least 10% of project cost, with the rest from a bank loan

Documents required

  • Aadhaar card and PAN card
  • Class 8 education certificate
  • Detailed Project Report
  • Land or premises ownership or rent agreement
  • Bank account details and loan sanction letter
  • Udyam registration and FSSAI registration
  • GST registration where applicable

How to apply

  • 1Register on the PMFME portal pmfme.mofpi.gov.in
  • 2A District Resource Person helps prepare the Detailed Project Report
  • 3Application is recommended by the District Level Committee
  • 4Bank appraises and sanctions the term loan
  • 5Subsidy is credited to the loan account after project completion

Important dates

Application window
Open throughout the year on the PMFME portal

Available in: All India

Visit the official portal