PMFME Scheme Surpasses 2 Lakh Credit-Linked Beneficiaries

PMFME Scheme Surpasses 2 Lakh Credit-Linked Beneficiaries

The Pradhan Mantri Formalisation of Micro Food Processing Enterprises (PMFME) Scheme has surpassed the milestone of 2 lakh credit-linked beneficiaries. This marks a significant achievement in the formalisation, modernization, and strengthening of India's micro food processing sector.The PMFME Scheme was launched to integrate unorganised micro food processing enterprises into the formal economy by improving their access to institutional finance, technology, skill development, and markets. Under the scheme, eligible beneficiaries receive credit-linked capital subsidy, capacity-building support, technical assistance, branding, and marketing support to enhance the competitiveness of their enterprises.

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¨     More than 2 lakh micro food processing enterprises have received loan sanctions under the scheme, leveraging project investments of over ₹20,300 crore.

¨     The scheme has generated nearly 11 lakh direct and indirect employment opportunities.

¨     Around 90% beneficiaries are first-generation entrepreneurs and 44% are women entrepreneurs.

¨     More than 75,000 PMFME-supported enterprises have entered the formal economy through registrations under Udyam, Udyam Assist, FSSAI, and GST.

¨     The Scheme’s Seed Capital support has benefitted more than 4.18 lakh Self Help Group members.

About the PMFME Scheme

Launch and Objective

¨     Launched in 2020 under the Aatmanirbhar Bharat Abhiyan and implemented by the Ministry of Food Processing Industries (MoFPI).

¨     Aims to formalise and enhance the competitiveness of micro food processing enterprises in the unorganised sector through financial, technical, and business support.

Funding Pattern and Outlay

¨     A Centrally Sponsored Scheme with an outlay of ₹10,000 crore for the period 2020–21 to 2025–26.

¨     Funding pattern: 60:40 between Centre and States; 90:10 for North-Eastern and Himalayan States; 100% Central assistance for Union Territories.

Key Features

¨     Adopts the One District One Product (ODOP) approach to promote district-specific food products and value chains.

¨     Provides 35% credit-linked capital subsidy on eligible project cost, subject to a maximum of ₹10 lakh per unit.

¨     Provides Seed capital support of up to ₹40,000 per SHG member for working capital and small tools.

¨     Support for common infrastructure, branding, marketing, capacity building, and handholding.

¨     Coverage

¨     Supports individual entrepreneurs, Self-Help Groups (SHGs), Farmer Producer Organisations (FPOs), cooperatives, and producer companies across the food-processing value chain.

Significance of the Scheme

¨     Formalising India’s Food Processing Ecosystem: The scheme facilitates the transition of micro food enterprises from the informal to the formal economy through access to finance, registrations, quality standards, and institutional support.

¨     Promoting Rural Entrepreneurship: By supporting first-generation entrepreneurs and local food-processing units, the scheme strengthens rural industrialisation and local value addition.

¨     Strengthening the ODOP Value Chain: The ODOP approach promotes district-specific products, improves branding and market access, and helps build region-based food-processing clusters.

¨     Women-Led and Inclusive Growth: Significant participation of women entrepreneurs and community institutions such as SHGs and FPOs contributes to inclusive economic development.

¨     Employment Generation and Value Addition: Expansion of local processing capacity creates employment opportunities, enhances farmer incomes, and supports agricultural value addition.