PMFME Scheme: Full Form, Eligibility, Benefits & Application Guide

The Government of India has introduced several initiatives to strengthen the food processing sector, particularly the unorganised segment. One such flagship initiative is the PMFME Scheme — Pradhan Mantri Formalisation of Micro Food Processing Enterprises. This centrally sponsored scheme aims to formalise and uplift micro food processing units by offering financial support, infrastructure development, branding, and capacity building. Launched in 2020 under the Atmanirbhar Bharat Abhiyaan, the scheme will run till 2024-25.

What is the Full Form of PMFME?

PMFME stands for Pradhan Mantri Formalisation of Micro Food Processing Enterprises. The scheme targets the unorganised micro food processing sector in India, which comprises around 25 lakh units and contributes nearly 74% of employment in the food processing industry.

Objectives of the PMFME Scheme

• To formalise unorganised food processing units

• To enhance competitiveness and promote "Vocal for Local"

• To integrate micro-enterprises with organised supply chains

• To support Farmer Producer Organisations (FPOs), cooperatives, and Self-Help Groups (SHGs)

Key Features of the PMFME Scheme

• Scheme Type: Centrally Sponsored

• Duration: 2020-21 to 2024-25

• Outlay: ₹10,000 crore

• Funding Pattern: 60:40 (Centre: State), 90:10 for North-Eastern and Himalayan states

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One District One Product (ODOP) Approach

A central component of the scheme is the ODOP initiative, which focuses on:

• Identifying district-specific food products

• Supporting perishables, cereals, fisheries, herbal items like turmeric, amla, and honey

• Offering marketing, branding, and infrastructure aligned with the ODOP value chain

Benefits of the PMFME Scheme

• Coverage of 2 lakh micro food processing units

• 35% credit-linked capital subsidy up to ₹10 lakhs per unit

• 50% branding and marketing support

• Seed capital of ₹40,000 per SHG member (up to ₹4 lakhs per group)

• Common infrastructure support (cold chains, labs, warehouses)

• Capacity building and training via national and state-level institutions

Eligibility Criteria

1. Support to Food Processing Units:

• Existing micro food processing units are in operation

• Individual or partnership ownership

• Applicant must be 18 years or older with a minimum Class 8 education

• One person per family is eligible

  
  

2. Seed Capital for SHGs:

• SHG members are currently engaged in food processing

• Must commit to using funds for tools and working capital

  
  

3. Branding & Marketing:

• Turnover of at least ₹5 crore

• Product must be ODOP-linked

• Product should be retail-ready

  
  

4. Common Infrastructure:

• FPOs, SHGs, cooperatives active for 3+ years

• Minimum turnover: ₹1 crore

• Should contribute 10% of the project cost

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PMFME Scheme Components

Common Infrastructure Development

Eligible entities receive assistance for building cold storage facilities, warehouses, incubation centres, laboratories, and other related infrastructure. Credit-linked capital subsidies are offered to fill viability gaps.

Branding and Marketing Support

Support for packaging, standardisation, quality control and promotion through NAFED, TRIFED, and SPVs. Up to ₹5 lakhs can be used for DPR preparation.

Capacity Building and Training

The National Institute of Food Technology Entrepreneurship & Management, along with IIFPT, provides training and technical support.

How to Apply for the PMFME Scheme

Offline Application:

Download the appropriate application form:

• For Farmer-Producer Companies

• For Cooperative Societies

• For Common Infrastructure

• For Self-Help Groups

  
  

Online Application Process:

1. Visit the PMFME Portal

2. Click on 'Applicant Registration'

3. Fill in the required details

4. Log in with credentials

5. Select 'Apply Online' and complete the form

Why PMFME Matters

This scheme offers a comprehensive platform for India's unorganised food processing sector to evolve into a modern, competitive, and formalised industry. It fills critical gaps in financing, infrastructure, skill-building, and market access.

Whether you are an entrepreneur, an SHG member, or part of an FPO, PMFME can be your gateway to scaling up and creating sustainable income and employment.