Home India Ministry of Food Processing Industries Atmanirbhar Bharat Abhiyaan- Vocal for Local in Food Process...
Date: 2025-07-25 Category: Not Applicable State: Union Government Country: India

Atmanirbhar Bharat Abhiyaan- Vocal for Local in Food Processing Sector

Issued by Ministry of Food Processing Industries · Not Applicable

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Executive Summary & Key Takeaways

## Policy Summary: PM Formalisation of Micro Food Processing Enterprises (PMFME) Scheme The Ministry of Food Processing Industries (MoFPI) is implementing the centrally sponsored PM Formalisation of Micro food processing Enterprises (PMFME) Scheme as part of the Atmanirbhar Bharat Abhiyaan's Vocal for Local initiative. The scheme, operational from 2020-21 to 2025-26 with a total outlay of Rs. 10,000 Crore, aims to enhance the competitiveness of micro food processing enterprises in the unorganized sector and promote formalization. The PMFME scheme provides financial, technical, and business support for the establishment and upgrading of micro food processing units across the country. As of June 30, 2025, a total of 1,44,517 loans have been sanctioned nationwide under the credit-linked subsidy component, with 15,828 loans specifically for Tamil Nadu. **Key components of financial assistance under the PMFME Scheme include:** * **Individual/Group Micro Enterprises:** Credit-linked capital subsidy of 35% of eligible project cost, with a maximum ceiling of Rs. 10 lakh per unit. * **Self-Help Groups (SHGs):** Seed capital of Rs. 40,000 per member engaged in food processing for working capital and small tool purchases, up to a maximum of Rs. 4 lakh per SHG Federation. * **Common Infrastructure:** Credit-linked capital subsidy of 35%, up to a maximum of Rs. 3 crore, to support Farmer Producer Organizations (FPOs), SHGs, Cooperatives, and government agencies in establishing common infrastructure that is also available for use on a hiring basis. * **Branding and Marketing Support:** Grants of up to 50% for branding and marketing activities for groups of FPOs, SHGs, Cooperatives, or Special Purpose Vehicles (SPVs) of micro food processing enterprises. * **Capacity Building:** Entrepreneurship Development Program (EDP) training tailored for the food processing industry, along with product-specific skilling. As of June 30, 2025, 1,11,873 beneficiaries have been trained under this component. The information was provided by the Minister of State for Food Processing Industries.

Key Entities Referenced

Ministry of Food Processing Industries: The Indian government ministry responsible for the food processing sector, also referred to as MoFPI. Atmanirbhar Bharat Abhiyaan: A Government of India initiative focused on self-reliance. PM Formalisation of Micro food processing Enterprises PMFME Scheme: A centrally sponsored scheme by the Ministry of Food Processing Industries (MoFPI) to support micro food processing enterprises. Tamil Nadu: A state in India where loans have been sanctioned under the PMFME scheme. Shri Ravneet Singh: Minister of State for Food Processing Industries. Rajya Sabha: The upper house of the Parliament of India, where information regarding the scheme was provided. Self Help Group: A group of people with similar problems who meet regularly to help each other. Andhra Pradesh: A state in India where loans have been sanctioned under the PMFME scheme.
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Ministry of Food Processing Industries Atmanirbhar Bharat Abhiyaan- Vocal for Local in Food Processing Sector Posted On: 25 JUL 2025 6:19PM by PIB Delhi As part of Atmanirbhar Bharat Abhiyaan - Vocal for Local Initiative in food processing sector, Ministry of Food Processing Industries (MoFPI) is implementing a centrally sponsored "PM Formalisation of Micro food processing Enterprises (PMFME) Scheme" for providing financial, technical and business support for setting up of new/ upgradation of micro food processing enterprises in the country including Tamil Nadu. The scheme is operational from 2020-21 to 2025- 26 with an outlay of Rs. 10,000 Crore. The scheme aims to enhance the competitiveness of micro- enterprises in the unorganized segment of the food processing industry and promote formalization of the sector. A total of 1,44,517 loans have been sanctioned to eligible applicants for credit linked subsidy across th the country out of which 15,828 loans have been sanctioned for the State of Tamil Nadu till 30 June, 2025. The State-wise loans sanctioned including for State of Tamil Nadu are at Annexure-I. The PMFME scheme is designed to address the challenges faced by the micro enterprises. The scheme aims to enhance the competitiveness of new and existing micro food processing enterprises in the unorganized segment of the food processing industry and promote formalization of the sector. The details of financial assistance available to Micro Food Processing Enterprises under PMFME Scheme are at Annexure-II. The Capacity Building component of the PMFME Scheme envisages Food Processing Entrepreneurship Development Program/ Training for all applicants recommendedby District Level Committee (DLC) for availing credit linked subsidy and also training to Self Help Group (SHG) beneficiaries of Seed Capital engaged in food processing activities. th Under the Scheme, 1,11,873 beneficiaries have been trained as on 30 June, 2025 as per the PMFME training portal updated by the respective States/UTs. This information was given by the Minister of State for Food Processing Industries Shri Ravneet Singh in a written reply in Rajya Sabha today. ***** STK ANNEXURE-I th Details of State-wise loans sanctioned for credit linked subsidy under PMFME scheme till 30 June, 2025 Sl.No State Loan Sanctioned (Nos.) 1 Andaman And Nicobar Islands 18 2 Andhra Pradesh 72483 Arunachal Pradesh 112 4 Assam 3353 5 Bihar 25349 6 Chandigarh 5 7 Chhattisgarh 1050 8 Dadra And Nagar Haveli And Daman And Diu 11 9 Delhi 299 10 Goa 116 11 Gujarat 780 12 Haryana 1453 13 Himachal Pradesh 1883 14 Jammu And Kashmir 1577 15 Jharkhand 3771 16 Karnataka 6739 17 Kerala 6978 18 Ladakh 86 19 Lakshadweep 0 20 Madhya Pradesh 9910 21 Maharashtra 24380 22 Manipur 301 23 Meghalaya 209 24 Mizoram 43 25 Nagaland 393 26 Odisha 2239 27 Puducherry 179 28 Punjab 2795 29 Rajasthan 1145 30 Sikkim 62 31 Tamil Nadu 15828 32 Telangana 7005 33 Tripura 211 34 Uttar Pradesh 17818 35 Uttarakhand 929 36 West Bengal 242 Grand Total 144517 ANNEXURE-II The details of financial assistance available under Pradhan Mantri Formalisation of Micro FoodProcessing Enterprises (PMFME) Scheme are as under: (i). Support to Individual / Group Category Micro Enterprises: Credit-linked capital subsidy @35% of the eligible project cost, maximum ceiling Rs.10 lakh per unit; (ii). Support to SHGs for seed capital: Seed capital @ Rs. 40,000/- per member of SHG engaged in food processing for working capital and purchase of small tools subject to maximum of Rs. 4 lakh per SHG Federation. (iii). Support for Common Infrastructure: Credit linked capital subsidy @35% subject to maximum of Rs. 3 crore to support FPOs, SHGs, Cooperatives and any Government agency for setting up of common infrastructure. The common infrastructure will also be available for other units and public to utilize on hiring basis for substantial part of the capacity. (iv). Branding and Marketing Support: Grant upto 50% for Branding and Marketing to groups of FPOs/ SHGs/ Cooperatives or an SPV of micro food processing enterprises. (v). Capacity Building: The scheme envisages training for Entrepreneurship Development Program (EDP) modified to meet the requirement of food processing industry and product specific skilling. ***** (Release ID: 2148505)

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