PMFME Scheme:- The Ministry of Food Processing Industry (MoFPI) introduced the Pradhan Mantri Formalisation of Micro Food Processing Enterprises (PMFME) scheme. The program’s goal is to make currently operating micro businesses in the unorganized food processing industry more competitive. The program offers business, technical, and financial support furthermore, FSSAI registration, Udyog Aadhaar, and GST formalized micro units.
The scheme covers:
- Self-help groups (SHGs), Farmer Producer Organisations (FPOs), Cooperatives, and Current Micro Food Processing Entrepreneurs
- Whether they were for groups or individuals, new units could only be supported for One District One Product (ODOP).
The scheme provides:
- A financial contribution of Rs. 40,000 is provided to each member of the Self Help Group (SHG) involved in food processing activities for the purpose of purchasing small tools and working capital.
- A maximum loan of ten lakhs
To be eligible for the scheme, applicants must:
- Be older than eighteen
- Have completed at least eight standard pass courses in education
- Financial assistance would only be available to one individual per family.
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- increased loan availability through FPOs, Cooperatives, Self Help Groups, and current microfood processors.
- integration with a well-organized supply chain through improved marketing & branding.
- assistance in moving the 2,00,000 currently operating businesses into a formal framework.
- greater availability of shared services, such as incubation services, storage, packaging, marketing, and shared processing facilities and labs.
- Businesses now have greater access to professional and technical assistance, and the food processing industry benefits from strengthened institutions, training programs, and research.
PMFME Scheme Details
- The PMFME scheme is the full name of the Pradhan Mantri Formalisation of Micro Food Processing Enterprises scheme. It is a one-stop shop for formalizing the food industry in India. This program is run by the Ministry of Food Processing with the intention of assisting the “Vocal for Local” initiative.
- Launched in 2020 as part of the Atmanirbhar Bharat Abhiyaan, the PMFME scheme runs for five years, from 2020–2021 to 2024–2025. The objective of this initiative is to formalize and expand the number of unorganized micro-enterprises in the food processing industry, with a particular emphasis on assisting Farmer Producer Organisations (FPOs), producers cooperatives, and Self-Help Groups (SHGs) involved in the agri-food processing industry.
- It is a five-year, Rs. 10,000 crore program funded by the central government. The federal government and the state governments will split the costs in a 60:40 ratio. The proportion of the federal government to state governments in the Himalayan and Northeastern states is 90:10.
PMFME Scheme List
The following elements of the food processing industry are the main focus of the program:
Common Infrastructure Development
All Farmer Producer Organisations (FPOs), Farmer Producer Companies (FPCs), Cooperatives, Self-Help Groups (SHGs) and their affiliates, private businesses, and government organizations will receive assistance for building shared infrastructure under this program.
This primarily includes support for building labs, warehouses, cold storage facilities, incubators, etc. When evaluating a project’s eligibility, various factors are considered, including the viability gap, the lack of private investment, the intricacy of the value chain, and the sector’s overall benefits. For capital investment, there is also a credit-linked capital subsidy available.
Branding and Marketing
For the purpose of marketing their processed food products, FPOs, Cooperatives, SHGs, or a Special Purpose Vehicle (SPV) of a micro food processing enterprise can get branding and marketing support through the PMFME scheme. This aids in the creation of uniform packaging, standardization, and branding that allows for quality control, and adherence to food safety regulations.
Support for marketing and branding is handled by the National Agriculture Cooperative Marketing Federation of India (NAFED) and the Tribal Cooperative Marketing Federation of India (TRIFED).
The State Nodal Agency will provide the food processing units with up to Rs. 5 lakhs in support of preparing the Detailed Project Report (DPR) for proposals related to marketing and branding.
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Capacity Building and Research
A key component in turning any disorganized group into an organized one is training. Grant recipients—both individuals and organizations—will go to training sessions to advance their professional development.
The National Institute for Food Technology Entrepreneurship and Management and the Indian Institute of Food Processing Technology are two national organizations that focus on capacity building and training. In collaboration with state-level technology institutes chosen by the state government, these two organizations conduct all mandatory training.
Support to Food Processing Units
This program provides financial assistance for the expansion or technological modernization of food processing units to members and unorganized micro food processing units.
Seed Capital for SHGs
Members of SHGs involved in food processing can purchase small tools and working capital with the help of seed money provided by the PMFME scheme. The seed money will be supplied at the SHG federation level and will be loaned to the members via SHG.
PMFME Scheme Subsidy
The government will offer the following subsidies under the PMFME scheme:
- For common infrastructure and capital expenditures of SHGs, FPOs, and cooperatives, a credit-linked capital subsidy of up to Rs. 3 crore, or 35% of the eligible project cost (Rs. 10 crore), is available.
- 50% of the total costs should go towards marketing and branding.
- For the purpose of buying small tools and working capital, each SHG member may contribute a maximum of Rs. 4 lakhs in seed money.
- A credit-linked capital subsidy of up to Rs. 10 lakhs per unit for individuals, partnerships, FPOs, NGOs, cooperatives, SHGs, or private limited companies to upgrade or establish new units, equivalent to 35% of the eligible project costs.
PMFME Scheme Benefits
- With credit-linked subsidies, it covers about two lakh micro food processing units.
- Individual units will get funding through this program to upgrade their food processing facilities.
- Through support services, technical knowledge transfer, and skill training, this program aims to increase the capacity of entrepreneurs.
- With the aid of marketing, the program seeks to increase integration with structured supply chains.
- It helps already-existing businesses transition into official organizations and register with the regulatory framework in a compliant manner.
Eligible for the PMFME Scheme
The following entities are eligible for the PMFME scheme
- Cooperatives, Farmer Producer Organisations (FPOs), and
- Self Help Groups (SHGs)
- current micro-food processing business owners
- Not for One District One Product (ODOP), but for new units only
For groups establishing shared infrastructure, the total eligible project cost cannot be more than Rs. 10 crore. The applying organization does not have any minimum turnover or experience requirements.
Under the Aatmanirbhar Bharat Abhiyan, the Ministry of Food Processing Industry (MoFPI) introduced the PMFME scheme. The program’s objective is to make currently operating micro businesses in the unorganized food processing industry more competitive.
Also Read:- Ayushman Bharat Yojana
PMFME Application Form
The PMFME program accepts offline as well as online applications. To take advantage of the scheme’s benefits, you can choose from four different kinds of application forms. There are distinct forms for the FPC, cooperative societies, common infrastructure, and SHGs in the case of offline applications.
Here is the form for Farmer Producer Companies:
Take a look at the form applicable to Cooperative Societies:
Let us check out the form template for Common Infrastructure:
Please take a look at the application form for Self-Help Groups:
PMFME Online Application
The procedure listed below should be followed if you would like to apply online for the PMFME scheme:
- See the PMFME website in its entirety.
- On “Applicant Registration” and “Login,” click.
- Once you have entered all necessary information, click “Register” on the application.
- By selecting “Login” and “Applicant Login,” you can access the PMFME website.
- Click “Submit” after inputting your user ID and password. Then, choose “Apply Online.”
- After the relevant form has been completed in full, click “Submit.”
The sector of unorganized food processing benefits from the PMFME scheme. There are 25 lakh units in the unorganized food processing sectors. With the aid of this program, this industry will be able to overcome the obstacles of lacking institutional credit, training, modern technology and equipment, and much more, and develop into a prosperous sector that contributes to the improvement of the nation’s general state.
Q. What is the maximum limit for PMFME food processing?
Ans- 10 lakh per unit.
Q. What is the minimum turnover for Pmfme?
Ans- The scheme’s eligibility requirements for individual microenterprises are as follows: they must be currently operating micro food processing units with an investment cap of no more than Rs. 1 crore and a turnover cap of no more than Rs. 5 crore.
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