PMFME Scheme - What it is and how you can benefit from it?

Last Updated on April 11, 2025 by Admin

Table of Content

More about the food processing state in India
Formalising the Micro food processing enterprises scheme
Salient features of the scheme
Benefits of the PMFME Scheme

India is known to have the largest possible diversified production base and it is a growing food industry. It has the largest milk-producing platform in the world and is also the second-largest producer of fruits, food grains, and vegetables. India is also noted as the second-largest producer of wheat grains. With a total geographical area of 328.7 mn ha, the gross cropped area is 198.4 mn ha. It has a cropping intensity of 142%.

There is an investor facilitation portal called Nivesh Bandhu as developed by the Ministry of Food Processing. It is one noteworthy platform to assist investors in making all kinds of investment decisions. Currently, the Ministry of Food Processing has notified 253 designated food parks in multiple states to provide affordable credit from NABARD, also known as a special fund.

There are multiple loans classified under food and agro-processing units and cold chains. These are primarily designed for Priority Sector Lending. Right now, the Ministry has approved around 23 cold chain projects, 22 food processing units, and 3 agro-processing clusters under PMKSY.

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More about the food processing state in India:

Some of the major food-producing states in India will be Tamil Nadu, Karnataka, Gujarat, Madhya Pradesh, Uttar Pradesh, Maharashtra, and Andhra Pradesh. The food processing sector is now engaging maximum people with 20.05 lakhs. It consists of 12.32% of the total employment share. India even holds the record as the second-largest producer of sugar next to Brazil.

• Not just known as the largest producer of food, but India has a vast and growing consumer base right now.
• However, despite its stronger agricultural production base, a significant amount of produced food gets wasted daily.
• Food wastage is the reason for inadequate infrastructures like transportation, proper packaging facilities, cold chains, storage, and even lower processing levels.
• As per MoFPI, the post-harvest loss will account for around 1.5 billion USD on an annual basis.

Formalising the Micro food processing enterprises scheme:

The PMFME Scheme is a one-stop solution in the food industry sector that is gaining quite some popularity around the nation right now. Well, the unorganised food processing sector at this present moment consists of around 25 lakh food processing enterprises.

It is one centrally sponsored scheme, which is designed to address challenges faced by micro-enterprises and mainly to tap the potential of cooperatives and groups to support the upgrade and formalisation of enterprises.
This scheme has currently adopted the ODOP or the One district one product approach. The main goal is to reap maximum benefit related to the sale. One of the major components of this scheme will be the capability to build existing micro-entrepreneurs.

Salient features of the scheme:

Before you move further with the PMFME Scheme, it is vital to know more about the salient features involved here. So, let’s get to know more about those points now.

• The micro-enterprises over here will get a Credit Linked Subsidy of around 35% of the total eligible project cost. It has a ceiling of around 10 lakhs rupees for upgrading the infrastructure and also capacity addition.
• The SHGs are likely to receive Seed Capital for presenting loans to all the members for working capital and also for the small tools.
• Moreover, through this scheme, you will receive proper on-site skill training along with hand-holding as one of the major features of this scheme.
• There will be a special focus presented on women entrepreneurs. There is a special package for the “Aspirational” districts under this scheme as well.
• The main goal of this scheme is to transform from the unorganised sector into one formal sector within a few years!
The objective of the PMFME Scheme:
You have been looking for the best food processing scheme in India and PMFME Scheme should be gaining your interest level more. Let us discuss some of those points now for your better understanding over here.
• The main goal of the PMFME Scheme is to increase access to credit by existing micro food processing enterprises, cooperatives, self-help groups and FPOs.
• With the help of this scheme, the supply chain will be added by strengthening the marketing and branding sector.
• The government is likely to provide support to around 200,000 enterprises around here through the PMFME Scheme.
• Apart from the points mentioned above, the scheme provides increased access to some of the common services like storage, laboratory, common processing facility, marketing, packaging and incubation.
• For strengthening the institutions, PMFME Scheme will offer increased access to technical and professional support as well.

Benefits of the PMFME Scheme:

Before you proceed further and get hold of our food processing process course module, we would like to offer you the beneficial aspects revolving around PMFME Scheme first.

• The central government with multiple state governments have launched this much-awaited PMFME Scheme.
• Thanks to this wonderful scheme, around 2 lakh micro food processing units will be covered with the needed credit linked subsidy.
• This scheme is here to formalise various micro-units with the help of FSSAI registration, Udyog Aadhaar and GST.
• The PMFME Scheme is here to offer additional marketing and branding support to the micro food processing units.
• The Indian government has allocated a total budget of 10,000 crore rupees for a span of 5 years, starting from 2022-21 to 2024-25.
• Apart from the quality improvement, PMFME Scheme will help in setting up common and infrastructural facilities along with skill development through technical knowledge and training.

Individual units will receive financial assistance with the PMFME Scheme. If you want to know more about the scheme and how the Indian government is working, be sure to join our website at FICSI for more details.