What is the PMFME Scheme?

A government scheme launched on 29th June 2020 to support micro food processing enterprises with technical, financial, and business assistance.

What is the budget allocation for the PMFME Scheme?

The scheme has a budget of ₹10,000 crore for a period of 5 years.

What is the PMFME Scheme?

A government scheme launched on 29th June 2020 to support micro food processing enterprises with technical, financial, and business assistance.

What is the budget allocation for the PMFME Scheme?

The scheme has a budget of ₹10,000 crore for a period of 5 years.

What approach does the PMFME Scheme follow?

The govt scheme follows the ‘One District One Product’ (ODOP) approach to promote local produce in the food processing sector.

What approach does the PMFME Scheme follow?

The govt scheme follows the ‘One District One Product’ (ODOP) approach to promote local produce in the food processing sector.

Who are the eligible stakeholders under the PMFME Scheme?

Eligible stakeholders include Farmer Producer Organisations (FPOs), Self-Help Groups (SHGs), Cooperatives, and Special Purpose Vehicles (SPVs) involved in ODOP processing.

What are the main benefits provided by the PMFME Scheme?

Benefits include credit access, enterprise integration with organised supply chains, transitional support for informal enterprises, access to common services, and support for research and training.

What are the objectives of Pmfme?

The scheme aims to formalise micro food enterprises, improve access to credit, enhance skills, and promote branding and market linkages. It also focuses on reducing wastage and increasing income.

What is the PMFME Scheme?

A government scheme launched on 29th June 2020 to support micro food processing enterprises with technical, financial, and business assistance.

What is the budget allocation for the PMFME Scheme?

The scheme has a budget of ₹10,000 crore for a period of 5 years.

What approach does the PMFME Scheme follow?

The govt scheme follows the ‘One District One Product’ (ODOP) approach to promote local produce in the food processing sector.

What is the food processing subsidy scheme 2025?

PMFME continues to be the main food processing subsidy scheme in 2025. It offers up to 35% capital subsidy for eligible micro food processing enterprises and is valid till 2025–26.

Who is eligible for PMFME scheme?

Individual entrepreneurs, Self-Help Groups (SHGs), Farmer Producer Organisations (FPOs), cooperatives, and micro food processing units are eligible. Preference is given to existing unorganised food processors.

What is the maximum loan amount under PMFME?

The maximum loan amount under PMFME is ₹10 lakh per individual unit. The subsidy is calculated on the eligible project cost.

When was PMFME introduced?

PMFME was introduced in June 2020 as part of the Atmanirbhar Bharat Abhiyan.

What is the salary of PMFME?

PMFME is not an employment scheme, so it does not offer a salary. It supports self-employment and entrepreneurship in the food processing sector.

What is the margin amount for PMFME?

The beneficiary must contribute a minimum margin of 10% of the project cost. The remaining amount is covered by bank loan and subsidy.

What is the tenure of PM FME scheme?

The loan tenure is generally up to 5 years, including a moratorium period as decided by the lending bank.

Which is the nodal Bank for PMFME?

There is no single nodal bank for PMFME. The scheme is implemented through scheduled commercial banks, regional rural banks, and cooperative banks under the guidance of Ministry of Food Processing Industries.

What is the MoFPI scheme?

MoFPI schemes are initiatives launched by the Ministry of Food Processing Industries to promote food processing infrastructure, entrepreneurship, and value addition. PMFME is one of the flagship schemes under MoFPI.

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Pradhan Mantri Formalisation Of Micro Food Processing Enterprises Scheme

Komal Bajpai

Author

Updated: 20-12-2025 at 3:30 PM

Enterprises engaged in food processing require assistance in various processes, such as branding, marketing, warehousing, etc., in their functioning. Small-scale enterprises set up in towns, villages, hilly or other remote areas require extra and special attention for a seamless conduct of business.

Another aspect of concern about these enterprises is the formalisation of such enterprises to link them with related businesses and areas in the supply chain. Addressing the need of the hour, the Ministry of Food Processing Industries implemented the Pradhan Mantri Formalisation of Micro Food Processing Enterprises.

Read the article to learn more about the PMFME Scheme details, ranging from its meaning and benefits to eligibility criteria and application process, along with information on the PMFME Scheme subsidy and the process of viewing the PMFME Scheme list PDF.

Overview

The table below summarises some key details about the PMFME Scheme that one should know.

Name of the scheme	PM Formalisation of Micro Food Processing Enterprises Scheme UPSC
Launched by	Government of India
When was the PMFME Scheme launch date?	29th June 2020
Objective	To provide technical, financial, and business support to micro food processing enterprises in India
Is there any PMFME Scheme last date for application?	Not specified
Mode of application	Online

What Is The Pradhan Mantri Formalisation Of Micro Food Processing Enterprises Scheme?

The Pradhan Mantri Formalisation of Micro Food Processing Enterprises (PMFME) Scheme is a flagship, partially funded by the Central Government scheme. The Food Processing Subsidy Scheme 2025 was launched on 29th June 2020 and had an outlay of Rs. 10,000 Crores for a period of 5 years. It aims to provide technical, financial, and business support to micro food processing enterprises in India.

The PMFME Scheme 2025 is based on the ‘One District One Product’ (ODOP) approach to ensure the promotion of local produce in the food processing sector and to ensure cost-efficiency based on the ‘scale’ of procurement and production. The scheme lays down the framework for value chain development and alignment of support infrastructure.

Help is extended to FPOs (Farmer Producer Organizations)/ Self-Help Groups (SHGs) / Cooperatives or Special Purpose Vehicle (SPV) of ODOP for certain activities. They are enlisted as follows:

Market Study and Product Standardisation,
Packaging Material,
Quality Control and food safety adherence for consumer retail sales,
Warehousing and Storage Rentals, and
Marketing and Promotion.

As of 23rd December 2023, 62,282 loans have been sanctioned, including 61,796 individual beneficiaries, 34 Farmers Producers Organizations (FPOs), 433 Self Help Groups (SHGs), and 19 Producer Co-operative Societies.

One can also read about the Pradhan Mantri Formalisation of Micro Food Processing Enterprises Scheme in Hindi.

Objectives Of The PMFME Scheme 2025

Several objectives of the PMFME scheme make it unique. Some of its key objectives are described below in points for one’s better understanding:

The scheme aims to formalise and organise the micro food processing business units by including unregistered and informal units under a formal working framework. This is being done so that the informal units can also avail themselves of government benefits through related government schemes.
The scheme also provides financial assistance to entrepreneurs of micro business units in various forms, such as subsidies and loans, so that people can stop taking out loans through informal means, which leads them to a debt trap due to high interest rates and inflexible terms of repayment.
The PMFME Scheme 2025 also provides training to entrepreneurs on various technical things, like processing techniques, quality control, knowledge of food safety standards, and compliance with the FSSAI norms.
One of the main objectives of the govt scheme is the promotion of the One District One Product (ODOP) approach, which encourages people to process area-specific food item which makes the quality of the food better and helps the locals also.
The government scheme also provides a range of benefits to FPOs, Self Help Groups (SHGs), and cooperatives. Benefits include establishing common services like labs, training sessions, and shared processing units.

What Are The Benefits Of The PMFME Scheme 2025?

The PMFME scheme has a bundle of benefits for its eligible applicants. Let us have a look at what this government scheme for micro-food processing enterprises has in store for the Indian citizens, as laid out in the PM formalisation of micro food processing enterprises scheme pdf!

Credit Access: Through this Sarkari Yojana, existing FPOs, SHGs, and other stakeholders can be provided with easy access to credit for their functioning and expansion.
Integration: Integration of enterprises with other infrastructure, and organised supply chains shall be achieved through branding and marketing help extended by the pmfme scheme.
Transitional Support: Since the scheme requires a transition of informal enterprises into formal ones with proper frameworks in place, support for the 2,00,000 enterprises will be extended as mentioned in the Micro food processing units list.
Common Services: Access will be extended to the enterprises for common services like laboratories, incubation centres, storage, practice, etc.
Research and Training: Research and training are not only being promoted but also being facilitated and aided by this scheme to enrich these enterprises and increase the scope of their growth.

Also Read: Blade Found In Air India Food- FSSAI Directs Installation Of X-Ray Machine

What Is The Eligibility For PMFME Scheme?

The eligibility criteria for the PMFME Scheme have been bifurcated for different stakeholders. Let us have a look at the eligibility criteria as laid down in the Micro food processing units list!

Farmer-Producer Organizations (FPOs):

FPOs must be engaged in processing One District One Product (ODOP) produce for at least three years. The FPO must have a minimum turnover of Rs. 1 crore, with project costs not exceeding the current turnover. Internal resources should cover 10% of the project cost and working capital margin.

Self-Help Groups (SHGs) and Cooperatives:

The individuals or SHGs and Cooperatives must be involved in ODOP processing. They must have passed at least Class 8. Only one person per family is eligible to be a beneficiary of this scheme.

How To Apply For PMFME Scheme?

The application procedure for this government scheme is accessible and easy to undertake. It is given below in stepwise format for one’s reference:

Step 1: Please visit the official website of the PMFME scheme to begin the application process.

Step 2: Fill in your details in the application form carefully and accurately.

Step 3: Attach the scanned copies of all the required documents.

Step 4: Submit the completed application form along with the necessary documents such as business registration details, bank account information, and proof of ODOP processing.

Step 5: Pay applicable fees if it is required.

Step 6: The concerned authorities will review your application, after which your application will be approved.

You can alternatively visit the Lok Seva Kendra in your area to undergo the same process in an offline mode.

What Are The Documents Required For The PMFME Scheme?

Applicants need to attach or upload some supporting documents with the application form of the PMFME scheme. The list of documents is as follows:

Aadhar card
Address proof
PAN card
Passbook
Proof of ODOP Processing Activity
Educational marksheets
Business registration certificate
Financial statements (for FPOs, SHGs, and Cooperatives)

Conclusion

The Pradhan Mantri Formalisation of Micro Food Processing Enterprises Scheme is a crucial scheme in the micro food processing sector, which aims to change its existing landscape, from finances to a complete reformation of the infrastructure. The overall aim of the govt scheme is to ensure that small rural business units work using sustainable measures for the benefit of the people and the environment.

This government scheme has several objectives that help in the generation of income, employment, and overall development of the rural economy. The PMFME scheme focuses on empowering micro entrepreneurs and also strengthening the food processing sector of India.

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