**Policy Summary: Support for Micro Food Processing Enterprises in India**
As of August 21, 2025, the Ministry of Food Processing Industries (MoFPI) is actively supporting the development of the food processing sector in India through various schemes, including the Pradhan Mantri Kisan Sampada Yojana (PMKSY), the Production Linked Incentive Scheme for Food Processing Industry (PLISFPI), and the PM Formalization of Micro Food Processing Enterprises (PMFME) scheme. These initiatives aim to incentivize the establishment and expansion of food processing infrastructure and provide financial, technical, and business support to micro food processing enterprises nationwide.
The PMFME scheme offers credit-linked capital subsidies of 35% of eligible project costs, with a maximum ceiling of Rs. 10 lakhs per unit for individual micro-enterprises. As of June 30, 2025, a total of 144,517 micro food processing enterprises have been approved for assistance under the PMFME scheme across the country. Furthermore, the Capacity Building component of the PMFME scheme has provided training to 116,666 beneficiaries, including trainers, district resource persons, and entrepreneurs, focusing on entrepreneurship development and product-specific skilling to meet industry needs.
The PMKSY and PLISFPI schemes also include projects within the Micro, Small, and Medium Enterprise (MSME) category, further catalyzing the growth of MSMEs in the food processing sector. In the state of Bihar, MoFPI has approved 13 food processing projects under PMKSY, 7 proposals under PLISFPI, and 25,349 proposals under PMFME as of June 30, 2025.
Shri Ravneet Singh, Minister of State for Food Processing Industries, provided this information in a written reply in Lok Sabha.
Key Entities Referenced
Ministry of Food Processing Industries: The Indian governmental ministry responsible for the development of the food processing sector in India, also referred to as MoFPI.
PM Formalization of Micro Food Processing Enterprises: A centrally sponsored scheme (PMFME) by MoFPI that provides financial, technical, and business support for upgrading and setting up micro food processing enterprises.
Pradhan Mantri Kisan SAMPADA Yojana: A Central Sector Scheme (PMKSY) by MoFPI incentivizing setting up and expansion of infrastructure related to food processing.
Production Linked Incentive Scheme for Food Processing Industry: A Central Sector Scheme (PLISFPI) by MoFPI incentivizing setting up and expansion of infrastructure related to food processing.
MSME: Micro, Small and Medium Enterprises. The policy aims to support and incentivize this sector within the food processing industry.
Bihar: A state in India where the PMFME, PMKSY and PLISFPI schemes are being implemented.
Shri Ravneet Singh: Minister of State for Food Processing Industries.
Lok Sabha: The lower house of the Parliament of India, where a written reply related to the policy was given.
Ministry of Food Processing Industries
1.44 Lakh Micro Food Units Supported under
PMFME to Boost India’s Food Processing Sector
MoFPI Schemes Accelerate MSME Growth in Food
Processing with Nationwide Financial and Technical
Support
Role of FPI for the Growth of MSME Sector
Posted On: 21 AUG 2025 3:22PM by PIB Delhi
In order to promote and ensure overall development of Food Processing Industries, Ministry of Food
Processing Industries (MoFPI) has been incentivizing setting up/expansion of related infrastructure through its
two Central Sector Schemes namely Pradhan Mantri Kisan SAMPADA Yojana (PMKSY) and Production
Linked Incentive Scheme for Food Processing Industry (PLISFPI). MoFPI is also implementing a Centrally
sponsored scheme namely PM Formalization of Micro Food Processing Enterprises (PMFME) scheme for
providing financial, technical and business support for upgradation/ setting up of micro food processing
enterprises.
All the three schemes are not region specific but demand driven and are implemented across the country
including Bihar. Ministry provides subsidy/incentives to the eligible applicants under these schemes.
Entrepreneurs in the Micro, Small & Medium Enterprises (MSME) sector also be incentivized under these
schemes of MoFPI.
Credit-linked capital subsidy @35% of the eligible project cost with maximum ceiling of Rs.10 lakhs per unit
is provided to individual micro enterprises under the PMFME scheme. A total of 1,44,517 micro food
processing enterprises have been approved for assistance under PMFME across the country till 30.06.2025.
Under the Capacity Building component of the PMFME Scheme, MoFPI provides assistance for training of
Trainers, District Resource Persons, Entrepreneurs and various other groups for Entrepreneurship
Development Skilling (EDP+) & product specific skilling to meet the requirement of food processing
industry. So far, 1,16,666 beneficiaries have been trained across the country under the PMFME scheme till
30.06.2025.
The projects approved under PMKSY and PLISFPI also include MSME category. Above initiatives act as a
catalyst for the growth of MSMEs in the food processing sector.
In the State of Bihar, MoFPI has approved 13 food processing projects under PMKSY, 7 proposals under
PLISFPI and 25349 proposals under PMFME till 30.06.2025.
This information was given by the Minister of State for Food Processing Industries Shri Ravneet Singh in a
written reply in Lok Sabha today.
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STK(Release ID: 2159014)