PMFME Scheme Crosses Historic Benchmark of Two Lakh Credit-Linked Beneficiaries

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The Ministry of Food Processing Industries hosted a national event in New Delhi to mark a major milestone. The Pradhan Mantri Formalisation of Micro Food Processing Enterprises (PMFME) scheme has now supported over two lakh credit-linked beneficiaries.

The PMFME scheme is a central initiative designed to support, modernize, and expand unorganized micro food processing units across the country.
It assists local food producers in entering the formal banking and regulatory systems through capital subsidies, common machinery facilities, and marketing support.

The government introduced this scheme on 29th June 2020 under the Aatmanirbhar Bharat Abhiyan.
The Ministry of Food Processing Industries (MoFPI) plans, finances, and directs the overall implementation of this program.
The main objective of the scheme is to bring nearly 25 lakh informal micro food processing businesses into the formal sector.

Individual units receive a 35% credit-linked capital subsidy capped at ₹10 lakh to upgrade machinery and technology.
Under the One District One Product (ODOP) approach, each district focuses on one primary food item to lower processing and marketing costs.
Farmer groups, cooperatives, and self-help group federations get a 35% grant up to ₹3 crore for shared processing and testing facilities.
Each eligible self-help group member receives ₹40,000 as seed capital for equipment purchases and daily working needs.
The government provides 50% financial assistance to cooperatives and groups for product branding, packaging, and marketing.
District Resource Persons (DRPs) guide rural entrepreneurs with paperwork, project reports, and official bank loan applications.
Funding is shared on a 60:40 basis between the Centre and general states, a 90:10 ratio for North-Eastern and Himalayan states, and 100% central funding for union territories without assemblies.

The scheme helps informal business owners register under GST, FSSAI, and Udyam, making it easier to obtain bank loans instead of relying on high-interest local money lenders.
Because women form a large portion of the beneficiaries, this initiative boosts grassroots business ownership and improves household incomes in rural areas.