## 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.
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
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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.
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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.
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STK
ANNEXURE-I
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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.
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(Release ID: 2148505)