35% Subsidy and up to ₹10 Lakh Assistance!
The PM Formalisation of Micro Food Processing Enterprises Scheme (PMFME) is a flagship scheme of the Central Government of India. Its main goal is to formalize, strengthen, and empower micro food processing enterprises by providing them with modern technology, enhanced capacity, and better marketing facilities, enabling them to compete globally.
Key Features and Benefits of the Scheme
This scheme is primarily based on the concept of ‘One District, One Product’ (ODOP) but also supports Non-ODOP products.
1. Subsidy Benefit (Financial Assistance):
- Individual Beneficiaries: Receive a Credit Linked Capital Subsidy at 35% of the project cost.
- Maximum Subsidy Limit: The subsidy is capped at ₹ 10 Lakh per unit.
- Beneficiary Contribution: The beneficiary must contribute a minimum of 10% of the total project cost, with the remaining amount covered by a bank loan.
2. Scheme Extension and Validity
- Initially planned for the period 2020-21 to 2024-25, the scheme has been recently extended until March 31, 2026.
3. Who is Eligible? (Target Beneficiaries)
- Existing and New Micro Food Processing Units.
- Individual Proprietorships/Partnerships.
- Farmer Producer Organizations (FPOs).
- Self-Help Groups (SHGs) and their Federations.
- Cooperatives.
- Unemployed youth, women, and farmers looking to start a food processing business.
4. Purpose of Assistance
- Establishment of a new food processing unit.
- Expansion and modernization of existing units.
- Purchase of machinery and equipment.
- Construction or modernization of the project shed.
- The scheme supports all products under the ‘One District, One Product’ (ODOP) approach, including cereals, fruits, vegetables, dairy products, meat, marine products, spices, etc.
5. Application Process
- The application process is entirely online.
- Registration and application must be done on the PMFME MIS Portal (pmfme.mofpi.gov.in).
- District Resource Persons (DRPs) assist in the verification of applications and the preparation of the Detailed Project Report (DPR).
- Once the application is sanctioned for the bank loan, the subsidy amount is disbursed directly through the bank.
