You are currently viewing PMFME Scheme: Pradhan Mantri Formalisation of Micro Food Processing Enterprises

PMFME Scheme: Pradhan Mantri Formalisation of Micro Food Processing Enterprises

  • Post author:
  • Post published:December 9, 2023
  • Post category:General


Pradhan Mantri Formalisation of Micro Food Processing Enterprises

The Indian food processing industry, comprising around 25 lakh unorganised units, is pivotal in shaping the nation’s culinary landscape. Despite being a significant contributor, these units face numerous challenges, ranging from technological gaps to inadequate infrastructure. Recognizing the need for a comprehensive solution, the Government of India, under the Ministry of Food Processing Industry (MoFPI), introduced the PMFME scheme. In this article, we delve into the details of the PMFME scheme, exploring its full form, eligibility criteria, benefits, and application process.

PMFME Scheme Overview:

The PMFME, or Pradhan Mantri Formalisation of Micro Food Processing Enterprises, is a transformative initiative to formalise the unorganised Indian food sector. Launched as part of the Atmanirbhar Bharat Abhiyaan in 2020, the scheme is set to operate for five years, from 2020-21 to 2024-25. With a focus on bolstering the ‘Vocal for Local’ campaign, PMFME seeks to uplift micro-enterprises in the unorganised food processing segment, particularly emphasizing support for Farmer Producer Organizations (FPOs), producer cooperatives, and Self-Help Groups (SHGs) engaged in agri-food processing.

Key Features of the PMFME Scheme:

  1. Financial Outlay:

    • The PMFME scheme boasts a substantial financial allocation of Rs.10,000 crores for the five-year period.
    • The funding is shared between the central government and state governments, with a 60:40 ratio. However, the central government bears 90% of the share in North-Eastern and Himalayan states.
  2. One District One Product (ODOP) Approach:

    • PMFME adopts the ODOP approach to enhance the procurement, common services, and marketing of food products.
    • States identify and promote specific food products within districts, focusing on perishable agricultural crops, cereal-based products, and other major district-produced items.
    • The ODOP framework supports selected products’ infrastructure, branding, and marketing.
  3. Components Addressed by the Scheme:

    • Common Infrastructure Development:
      • FPOs, Cooperatives, SHGs, and private enterprises receive support for creating common infrastructure, including incubation centres, cold storage, and laboratories.
      • Credit-linked capital subsidies are provided for capital investment.
    • Branding and Marketing:
      • Micro food processing enterprises’ FPOs, Cooperatives, SHGs, or Special Purpose Vehicles (SPVs) are assisted in branding and marketing.
      • National Agriculture Cooperative Marketing Federation of India (NAFED) and Tribal Cooperative Marketing Federation of India (TRIFED) handle marketing and branding support.
    • Capacity Building and Research:
      • Training is crucial, and the scheme supports skill development through institutions like the National Institute for Food Technology Entrepreneurship and Management and the Indian Institute of Food Processing Technology.
    • Support to Food Processing Units:
      • Unorganised micro food processing units receive subsidies for expansion or technology upgradation.
    • Seed Capital for SHGs:
      • SHG members engaged in food processing receive seed capital for small tools and working capital.
  4. PMFME Scheme Subsidies:

    • The scheme offers credit-linked capital subsidies, branding and marketing support, seed capital, and subsidies for unit upgradation.

Benefits of the PMFME Scheme:

The PMFME scheme brings forth several advantages:

  • Coverage of approximately two lakh micro food processing units with credit-linked subsidies.
  • Financial assistance to individual units for enhancing food processing facilities.
  • Capacity-building initiatives, including skill training, technical knowledge transfer, and support services.
  • Promotion of integration with organised supply chains through effective marketing.
  • Support for existing enterprises to transition into formal organizations with regulatory compliance.

Eligibility Criteria for the PMFME scheme:

Different eligibility criteria apply to various components of the scheme:

  • For Common Infrastructure Development: FPOs, cooperatives, and SHGs must be engaged in processing ODOP produce for at least three years. Minimum turnover and internal resources are also specified.
  • For Branding and Marketing: Proposals should relate to ODOP, with requirements for minimum turnover, scalability, and management capabilities.
  • For Capacity Building and Research: Eligibility extends to individual units, groups, and those receiving support for marketing and branding.
  • For Support to Food Processing Units: Criteria include ownership rights, age, educational qualifications, and restrictions on financial assistance to one person per family.
  • For Seed Capital for SHGs: Eligibility is limited to SHG members engaged in food processing.

PMFME Application Process Online:

The PMFME scheme allows both online and offline applications. Different forms cater to FPCs, cooperative societies, common infrastructure, and SHGs. The online application process involves registration on the official PMFME website and form submission through the applicant login.

To submit your PMFME scheme application online, follow these steps:

  1. Visit the official PMFME website.
  2. Click ‘Login’ and then ‘Applicant Registration.’
  3. Enter the necessary details, click ‘Register.’
  4. Log in by selecting ‘Login’ and ‘Applicant Login.’
  5. Enter your User ID and password, and click ‘Submit.’
  6. From the dashboard, select ‘Apply Online.’
  7. Complete the relevant form with all details, then click ‘Submit.’


In conclusion, the PMFME scheme emerges as a pivotal initiative to empower and formalize India’s unorganised food processing sector. With its comprehensive approach encompassing financial support, infrastructure development, and capacity building, the scheme sets the stage for a more robust and integrated food processing industry.

Frequently Asked Questions (FAQs)

1. What is the PMFME scheme?

The PMFME scheme provides technical, business, and financial support to unorganised micro food processing units.

2. Who is eligible for the PMFME scheme?

Eligible entities include farmer producer organizations (FPOs), self-help groups (SHGs), existing micro food processing entrepreneurs, and cooperatives.

3. What is the benefit of the PMFME scheme?

The scheme assists unorganised micro-food processing units in transitioning to the organised sector, offering support for branding, marketing, packaging, capacity-building, and technical training.

4. What products are under the PMFME scheme?

Included products range from coriander powder and makhana to cookies, amla juice, millet flour, honey, mango pickles, and more.

5. What is the maximum limit of PMFME?

Credit-linked subsidies of 35% with a ceiling of Rs. 10 lakh for unit upgrades and a maximum seed capital of Rs. 40,000 per SHG member.

6. What is PMFME’s budget?

The total funds allocated for the PMFME scheme is Rs. 10,000 crores for the period from 2020 to 2025.


I'm a professional content creator passionate about writing. My articles span law, business, finance, investments, and government schemes, always simplifying complex topics. Exploring and embracing novelty are my off-duty joys.