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Understanding the PMFME Scheme: A Pathway to Growth

Updated: Nov 29

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


The PMFME Scheme has several key objectives:


  • 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.



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, and herbal items like turmeric, amla, and honey.

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


Benefits of the PMFME Scheme


The PMFME Scheme offers numerous benefits, including:


  • 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 must be in operation.

  • Individual or partnership ownership is required.

  • The 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 must currently engage in food processing.

  • They must commit to using funds for tools and working capital.


3. Branding & Marketing:


  • A turnover of at least ₹5 crore is necessary.

  • The product must be ODOP-linked.

  • The product should be retail-ready.


4. Common Infrastructure:


  • FPOs, SHGs, and cooperatives must be active for 3+ years.

  • Minimum turnover: ₹1 crore.

  • They should contribute 10% of the project cost.



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.


Conclusion: A Bright Future for Food Processing


The PMFME Scheme is a significant step towards transforming the food processing landscape in India. By focusing on micro food processing units, it aims to uplift the unorganised sector, ensuring that it becomes a vital part of the economy. The support provided through this initiative will not only enhance productivity but also create job opportunities and promote local products.


As the scheme progresses, it is expected to bring about a substantial change in the way food processing operates in India. The emphasis on branding, marketing, and infrastructure development will empower small businesses to thrive in a competitive market.


In conclusion, the PMFME Scheme is not just about financial assistance; it is about creating a sustainable ecosystem for food processing in India. With the right support and guidance, the future looks promising for those involved in this sector.


Let’s build globally competitive Indian businesses.

Follow across platforms for practical insights, tools, and real-world trade knowledge:


📌 YouTube (Hindi/English) — Global Trade Institutehttps://www.youtube.com/@globaltradeinstitute


📌 YouTube (Bengali) — West Bengal Going Globalhttps://www.youtube.com/@westbengalgoingglobal


📌 Instagram — Global Trade Educator Dhriti


📌 LinkedIn — Dhriti Mukherjee Pipil

 
 
 

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