PM FME Scheme

PM FME Scheme, Apply Online, Subsidy, Benefit & Eligibility

PM FME Scheme:- The fragmented food processing business needs to make the various microenterprises that already exist more competitive. Formalization of this disorganized sector of the food processing industry is also necessary. In order to achieve this, the state and federal governments collaborated to introduce the PM FME Scheme, also known as Pradhan Mantri’s formalization of micro food processing enterprises. Producers’ cooperatives, self-help groups, and farmer-producer associations will all receive financial incentives through this plan, along with their value chains.

You may find all the information you need about this scheme in this article, including registration, login, features, benefits, goal, eligibility requirements, needed paperwork, and selection process.Therefore, if you want to take advantage of the PM FME plan, we urge that you carefully read this material through to the end.


PM FME Scheme: Details

The Ministry of Food Processing Industries launched PMFMPE, a Centrally Sponsored Scheme, on June 29, 2020. Its goal is to help micro-enterprises overcome their obstacles and to utilize groups and cooperatives to help them formalize and upgrade.


Promote formalization of the food processing industry by boosting the competitiveness of currently operating individual microenterprises in the unorganized sector; and 3. Provide support to Farmer Producer Organizations (FPOs), Self Help Groups (SHGs), and Producers Cooperatives throughout their whole value chain.


The plan calls for spending ₹ 10,000 crores over five years, from 2020–2021 to 2024–2025. The program’s expenditures would be split 60:40 between the federal government and state governments, 90:10 with the northern states in the eastern and Himalayan regions, 60:40 with the legislature in UTs, and 100% with the center for other UTs.


2,00,000 micro food processing facilities will receive direct financial support through credit-linked subsidies under the program. To hasten the sector’s expansion, adequate supportive institutional architecture and shared infrastructure will be provided.

PM FME Scheme: Berif Description

Name of the schemePM FME Scheme
Started ByGovernment Of India
BeneficiaryCitizens Of India
ObjectiveTo Cover Micro Food Processing Unit With Credit Linked Subsidy
Year 2024
Official Website

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To build the capability of microenterprises to enable:

  • Increased loan availability from current FPOs, Cooperatives, Self Help Groups, and microfood processing companies.
  • Integration through improved marketing & branding with a well-organized supply chain.
  • Backing for the formalization of the 2,00,000 currently operating businesses.
  • Enhanced availability of shared services such as shared laboratories, processing centers, packaging, marketing, and incubation services.
  • Strengthening of food processing industry training programs, research, and institutions; and
  • Increased company access to technical and professional support.


The program’s four main parts each address a need identified by the industry:

  • Assistance to individuals and collectives operating microbusinesses.
  • assistance with marketing and branding.
  • backing for the bolstering of institutions.
  • establishing a strong foundation for project management.

Assistance for Personalized Microbusinesses

A credit-linked capital subsidy equivalent to 35% of the qualified project cost would be given to each individual micro food processing unit, up to a maximum of ₹ 10,000,000 per unit. 10% of the project’s total cost should be contributed by the beneficiary, with the bank loaning the remaining amount.

Farmer producer organizations (FPOs) and producer cooperatives are supported in the following ways

  • Grant with credit linkage at 35%.
  • assistance with training.
  • In these situations, the grant’s maximum amount would be as specified.

Support for Self-Help Groups (SHGs)

  1. Capital for seeds:
  • SHGs producing ODOP produce would be given preference when it came to getting seed capital, and not all SHG members would be involved in food processing. The project would provide seed capital at a rate of Rs40,000/-per SHG member for working capital and the purchase of small tools. As a result, SNA/SERLM would provide seed money to the SHG federation, which would then distribute it among SHGs at the federation level. Members of the SHG would receive this amount as a loan, which they would then have to repay to the SHG federation.
  1. Assistance with credit-linked grants at a rate of 35% for individual SHG members operating as a single unit in the food processing sector, up to a maximum of Rs 10 lakh.
  2. Credit-linked grants of 35% are available to support capital investments at the Federation of SHG level. In these situations, the financing cap would be as specified.
  3. serve for SHGs through Training and Handholding: A vast pool of highly qualified resource personnel is made available to serve SHGs by State Rural Livelihood Missions (SRLMs).These skilled SRLM local resource personnel with experience in agro-produce would be utilized for DPR preparation, training, unit upgrades, assistance with handholding, and other relevant duties.

In favor of Common Infrastructure

Under the Scheme, funding for the following shared infrastructure would be provided:

A central processing center for ODOP output; Farm gate premises for agricultural produce sorting, grading, warehousing, and cold storage; An incubator center with one or more product lines that smaller units might contract to use for their produce processing. The incubation center may have some space set aside for training. It ought to be run like a company.

Support for Marketing and Branding

Complete funding for marketing-related training under the program; Creating a recognizable brand and packaging, including standardization to take part in shared packaging; Marketing partnerships with state-level institutions and national and regional retail chains; Quality control to guarantee that product quality satisfies necessary standards.

Framework of Convergence

The following government programs would provide benefits to the food processing enterprises:

  • The National Rural Livelihood Mission gives SHGs interest subsidies, training, handholding support, and seed money.
  • SVEP, or the Village Entrepreneurship Program for Startups,Under the Centrally Sponsored Scheme, a branch of NRLM, rural start-ups can receive loans of up to ₹ 1,00,000 for individual entrepreneurs and ₹ 5,00,000 for groups, at a rate of 12% interest, in exchange for receiving guidance, assistance, and training from the Community Enterprises Fund (CEF).
  • 2% interest subvention on the outstanding debt is part of the 2018 Interest Subvention Scheme for Incremental Credit to MSMEs.
  • Credit Guarantee Trust Fund for Micro & Small Enterprises (CGTMSE) for a loan up to ₹ 2,00,00,000. This is a collateral-free option.
  • PM MUDRA Yojana, offering a ₹ 10,000,000 loan.
  • The ASPIRE scheme (A Scheme to Promote Innovation, Rural Industry, and Entrepreneurship).
  • The Fund for Rural Industry Regeneration Scheme (SFURTI).
  • MSEs’ Public Procurement Policy.
  • Benefits from several other MoFPI programs, including Cold Chain, Agricultural Production Cluster, and Backward & Forward Linkages, would be provided to groups and clusters.
  • If it fits the standards, support for skill training for SHGs would be provided by PMKVY and NRLM.The PM FME program, created especially for this kind of work, and NRLM would both support shorter-term on-site training.


The PMFMPE Eligible Borrowers might be

  • Farmer Producer Organization (FPO
  • Self-Help Groups
  • Co-operatives
  • Existing Micro Food Processing Entrepreneurs
  • New Units would only be supported for One District One Product (ODOP), regardless of whether they were for individuals or companies.

Qualifications for individual microbusinesses:

  • The currently operational micro food processing units.
  • The units listed in the SLUP for ODOP items or those that the resource person physically inspects are the ones that are currently in use. The electricity bill would validate the operation of any units that use electricity. The foundation for other divisions would consist of current operations, machinery, inventory, and sales.
  • There shouldn’t be 10 employees, and the company shouldn’t be founded.
  • The manufacturer need to be making the item that is specified in the district’s ODOP. It is also possible to consider different microbusinesses.
  • The applicant needs to be the legal owner of the business.
  • A proprietary entity or partnership may own the business.
  • The candidate must be older than eighteen and have completed at least eighteen standard pass credits.
  • Only one member of a family would be qualified to receive financial aid. One’s spouse, kids, and oneself would constitute one’s “family” in this sense.
  • the readiness to formally request and pay back a bank loan equal to 10% of the project’s cost.
  • The budget for the project shouldn’t include the cost of the land. The project cost may include the cost of the long-term lease or rental worked, in addition to the ready-built. As part of the project cost, the workshop’s leasing rental should only be for a maximum of three years.

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Cooperatives and FPO Eligibility Requirements

  • Ideally, it ought to be involved in the processing of the ODOP product.
  • It must generate at least Rs. 1 crore in revenue.
  • The suggested project’s cost shouldn’t surpass the current turnover.
  • The members must have dealt with the product for a minimum of three years with adequate knowledge and experience.
  • To cover 10% of the project cost and margin money for working capital, the cooperative/FPO must have enough internal resources or state government approval.

SHGs’ Eligibility Requirements for Seed Capital:

  • Only members of SHGs who are currently engaged in food processing would be eligible.
  • The SHG member must promise to the SHG and SHG federation that they would use this money for operating capital and the acquisition of minor tools.
  • Prior to disbursing the seed money, SHG Federation needs to get the following fundamental information for every member:
  • Specifics of the item being worked on.
  • Additional actions are carried out.
  • The yearly turnover.
  • Produce marketing and raw material sources.

Credit-Linked Grant Eligibility Requirements for SHG Capital Investment:

  • The Self-Help Groups (SHGs) must possess adequate cash to cover 10% of the project expenses and 20% of the working capital margin, or they can get funding from the State Government.
  • The SHG members must have at least three years’ worth of ODOP product processing expertise.

Qualifications for Support in Marketing and Branding:

The proposals must meet the requirements listed below: –

  • The proposal must have an ODOP connection.
  • To be eligible for support, a product’s income must be at least Rs 5 crore.
  • The item that is sold to the consumer should be the last one in the retail pack.
  • To unite a significant number of producers, the applicant should be an FPO, SHG, cooperative, regional, or state-level special purpose entity.
  • Producers and products must to be expandable to bigger scales.
  • The proposal should specify the promotional entity’s management and entrepreneurial capabilities.

Qualifications for Funding National Institutions for Research & Capacity Building:

The Indian Institute of Food Processing Technology (IIFPT) and the National Institute for Food Technology Entrepreneurship and Management (NIFTEM) would be qualified at the national level.

Qualifications for Funding Technical Institutions at the State Level for Research & Capacity Building:

There should already be a State Level Technical Institution that specializes in food processing technologies. This organization might be:

  • A college or institute affiliated with any university, including State Agriculture University.
  • An institute for state-owned research on food processing technologies.
  • A food processing-focused institute run by the Government of India or one under the CSIR.
  • If it’s a college, it ought to have the required faculty members and undergraduate and graduate programs in food processing technology.
  • The Institute needs to have a fully functional laboratory equipped with the tools required for processing and testing.
  • Faculty members conducting research, developing new products, and creating equipment for food processing—especially for MSMEs—should be employed by the Institute.
  • The State Government ought to endorse the plan.
  • The Institute ought to agree to designate a Nodal Officer and a team of at least two faculty members who will work only on the Scheme.
  • There should be enough built-up space at the Institute for training beneficiaries of the Scheme.
  • Pilot plants for the processing of a few items under ODOP for the State should ideally be owned by the institute.

Required Document

  • Aadhaar card
  • Residence proof
  • Incorporation certificate
  • Bank account
  • Age proof
  • Passport size photograph
  • Mobile number

How to apply for the PM FME Scheme

1 Step:

  • Go to
  • Select “Applicant Login” after selecting “Login”. The application’s login screen will appear.
  • Click “Submit” after choosing the “Beneficiary Type” and entering your “Password” and “User ID” if you are an already registered user.
  • Following authentication, you will be able to access the website.

2 Step:

  • Press “Sign Up” to sign up for the scheme if you’re a new user.
  • As required by the Aadhaar Card, please supply the following information:
  • Make your beneficiary type selection: Common Infrastructure Application, Individual, Group, and
  • Furthermore, pick the kind of “Non-Individual” Application if you have chosen “Group Application” or “Common Infrastructure Application”:
  • Farmers Producer Companies (FPC/FPO) / Cooperative Societies / Self-Help Groups (SHG)
  • Name
  • Email ID
  • Mobile Number
  • Address
  • State
  • District

3. Step

  • Select “Register” by clicking. You are about to be added to the PMFMFPE roster.
  • An email containing your username and password will be sent to the registered email address. On the registered mobile number, there will also be a notice regarding the successful registration.

Register for the PMFMFPE Program

1 Step:

  • Enter your login information to access the system.
  • Choose your role on the screen that appears next:
  • Persona Fresh Food Processing Company
  • A single applicant (with a current business turnover above ₹ 1,00,00,000)
  • Individual Candidate (Within ₹ 1,00,00,000 of Current Business Turnover)

2 Step:

  • After selecting the preferred option, press “Submit”. Choose “Yes” from the Confirmation Pop-Up menu.
  • You’ll be taken to the dashboard of the applicant.
  • Three options are visible on the left pane: Home / Apply Online / Guidelines and Instructions.
  • You have two options: click “Apply Online” or click “Guidelines and Instructions” to read and download the scheme guidelines.

3 Step:

  • Click “Apply Online” to access the online application. Seven sections make up the form: Declaration, Document Upload, Lending Bank, Applicant Details, Proposed Business Details, Declaration, and Submit.

4 Step:

  • Fill out the application form completely, upload the necessary files in the format, review the declaration, and then click “Submit” to send it in. The screen will display the notification indicating the successful submission of the application. The user’s registered email address will also receive the same.

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Contact Details

  • Address-Panchsheel Bhawan, August Kranti Marg, Khelgaon, New Delhi-110049
  • Phone: 011-26406500, +91 1302281089, +91-8168001500

FAQ’s On PM FME Scheme

Q.) What Is the PM FME Program?

Ans. “Prime Minister Micro Food Processing Enterprises” is what PM FME stands for. With a budget of Rs. 10,000 crores, PMFME is an all-India Centrally Sponsored Scheme that will reach 2,000 000 businesses over the course of five years, from 2020–2021 to 2024–2025, and is being carried out by MOFPI.

Q.) Micro Enterprises: What Are They?

Ans. A micro enterprise is defined as one that has an annual sales of no more than Rs. 5 crore and invests no more than Rs. 1 crore in plant, machinery, or equipment.

Q.) Is There A Credit Subsidy/Grant Limit?

Ans. Yes, it would be 35 percent of the project’s total cost, with a per-beneficiary cap of Rs. 10 lacs. A seed capital of Rs 40,000/-per member would be given to SHG members who process food in order to purchase modest tools and for working capital.

Q.) Does the Participant Need to Make an Initial Investment in Order to Use the Scheme?

Ans. Yes, the applicant must agree to pay 10% of the project’s total cost.

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