**Executive Summary**
The Pradhan Mantri Formalisation of Micro Food Processing Enterprises (PMFME) Scheme, launched in June 2020, aims to assist micro food processing enterprises by addressing challenges in access to credit, technology, marketing, and capacity building. The biggest implementation challenge is generating adequate, complete applications for sanction by banks. NIFTEMs have developed 779 ODOP training modules, 199 presentations, 192 videos, 190 DPRs, and 198 handbooks/course materials to support continuous learning for beneficiaries. Till 31st October 2025.
**Key Points / Main Content**
* **Scheme Overview:**
* The PMFME Scheme is a centrally sponsored scheme launched in June 2020.
* It targets micro food processing enterprises in the informal sector.
* The scheme aims to address challenges such as access to credit, technology upgradation, marketing linkages, and capacity building.
* **Implementation and Support:**
* District Resource Persons (DRPs) guide applicants through the online application process.
* 12 nationalized, 20 private, and 165 other banks are partnering in the implementation of the scheme.
* Applicants receive training under the Entrepreneurship Development Program (EDP) through State Level Technical Institutes (SLTIs).
* One percent of the budget is earmarked at the State level for awareness programs.
* Regular review meetings are held with State/UT Governments and participating banks.
* **Incubation and Common Facility Centers:**
* 21 out of 76 approved Incubation Centers are operational.
* Support for creation of Common Facility Centre (CFC) is provided @ 35% of eligible project cost with maximum limit of Rs. 3 Crore.
* **Training and Development:**
* The scheme provides Entrepreneurship Development Programme (EDP) training for beneficiaries.
* Master Trainers are trained and certified by FICSI, then train district-level trainers, who are also certified by FICSI.
* Training programmes are organized and coordinated by State Level Technical Institutions (SLTIs).
* The training curriculum is developed by NIFTEM-Kundli and NIFTEM-Thanjavur.
* Training content is continuously updated based on feedback.
* **Expansion and Collaboration:**
* The scheme aims to expand incubation facilities in high-demand ODOP clusters, subject to proposals from State Governments.
* The Scheme fosters collaborations with technical institutions, agricultural universities, and industry bodies.
**Impact Analysis**
**Micro Food Processing Enterprises:**
* **Impact:** Beneficiaries gain access to credit, technology upgradation, marketing linkages, and capacity building. They receive guidance and training to improve project formulation and increase chances of project sanction.
* **Action Required:** Engage with DRPs, participate in training programs, and utilize available resources to develop complete applications.
**State/UT Governments:**
* **Impact:** Responsible for implementing the scheme, conducting awareness programs, and collaborating with banks. They receive proposals from the Scheme.
* **Action Required:** Conduct regular review meetings, allocate budget for awareness programs, and facilitate the expansion of incubation facilities.
**Banks:**
* **Impact:** Partner in the implementation of the scheme by sanctioning loans to micro food processing enterprises.
* **Action Required:** Partner with the scheme to ensure widest access to the public.
**National Institute of Food Technology Entrepreneurship and Management (NIFTEM):**
* **Impact:** Involved in preparing Model Detailed Project Reports (DPRs), developing training curriculum, and training Master Trainers.
* **Action Required:** Continuously update training content based on feedback and emerging technologies, and conduct national-level online webinars.
**Farmer Producer Organisations (FPOs)/ Self Help Groups (SHGs) / Cooperatives/ Government Agencies:**
* **Impact:** Eligible for support in creating Common Facility Centres (CFC).
* **Action Required:** Establish food processing line along with common infrastructure/ value chain/ incubation centre.
Key Entities Referenced
PMFME Scheme: Pradhan Mantri Formalisation of Micro Food Processing Enterprises Scheme; a Centrally Sponsored Scheme aimed at assisting micro food processing enterprises.
Ministry of Food Processing Industries: The government ministry responsible for the PMFME Scheme.
National Institute of Food Technology Entrepreneurship and Management (NIFTEM): An institute involved in preparing model project reports and training Master Trainers under the PMFME Scheme.
Ministry of Food Processing Industries
Challenges Faced by PMFME Scheme
Strengthening India’s Micro Food Processing Sector through
the PMFME Scheme
PMFME Scheme Strengthens India’s Micro Food Processing
Sector
प्रव तथ: 18 DEC 2025 2:07PM by PIB Delhi
The Pradhan Mantri Formalisation of Micro Food Processing Enterprises (PMFME) Scheme was
launched as a Centrally Sponsored Scheme in June, 2020 with the objective of assisting micro food
processing enterprises in the country, which are largely in informal sector and typically suffer from lack of
access to credit, technology upgradation, marketing linkages and capacity building. The scheme
components have been designed in a way to address these challenges faced by micro food processing
enterprises. Being a demand driven scheme, the biggest implementation challenge is to generate adequate
number of complete applications by prospective entrepreneurs and their sanction by implementing Banks.
Model Detailed Project Reports (DPRs) for food processing projects have been prepared in consultation
with National Institute of Food Technology Entrepreneurship and Management (NIFTEMs) and are placed
on the scheme portal for easy access by all. District Resource Persons (DRPs) have been appointed in
sufficient numbers in districts by State implementing Departments / Agencies to guide and handhold the
applicants through the application process, which is entirely online and seamless. A total of 12
nationalized, 20 private and 165 other banks are partnering in the implementation of scheme to ensure
widest access to public. The applicants are provided training under Entrepreneurship Development
Program (EDP) through State Level Technical Institutes (SLTIs) and a pool of such institutes along with
Master Trainers, District Level Trainers and Private Training Partners has been created. Apart from
entrepreneurship development, such training programs help the applicants in proper project formulation
increasing the chance of project sanction by Banks. One percent of budget is earmarked at State level to
conduct awareness programs about the publicity of scheme through appropriate medium of
communication. Regular review meetings are held with State / UT Governments and participating Banks
to improve the performance of the scheme.
Under the PMFME Scheme, out of the 76 approved Incubation centers, 21 Incubation Centres are
operational. In addition, support for creation of Common Facility Centre (CFC) is provided @ 35% of
eligible project cost with maximum limit of Rs. 3 Crore to Farmer Producer Organisations (FPOs)/ Self
Help Groups (SHGs) and its Federations/ Cooperatives/ Government Agencies to establish food
processing line along with common infrastructure/ value chain/ incubation centre. Substantial capacity of
the CFC is available for use by other units and public on hiring basis.
The Scheme provides Entrepreneurship Development Programme (EDP) training for beneficiaries
engaged in micro food processing. To ensure quality and uniformity, Master Trainers are trained by the
National Institute of Food Technology Entrepreneurship and Management (NIFTEM), Kundli andNIFTEM, Thanjavur, and are certified by the Food Industry Capacity and Skill Initiative (FICSI). These
Master Trainers, in turn, train district-level trainers, who are also certified by FICSI. Only certified trainers
are permitted to deliver training under the Scheme.
At the State level, training programmes are organised and coordinated by State Level Technical
Institutions (SLTIs), while monitoring of training delivery is undertaken by district-level officers
appointed by the State Nodal Agency (SNA). This includes verification of training conduct and internal
assessment of beneficiaries to assess learning outcomes and training effectiveness. Further, all training-
related information, including training modules and beneficiary attendance, is maintained on the dedicated
online training portal, and participation certificates are generated digitally upon successful updation and
validation of records.
The training curriculum is developed by NIFTEM-Kundli and NIFTEM-Thanjavur with inputs from other
national institutions to ensure quality and relevance. Based on feedback from States and other
stakeholders, training content is continuously updated to reflect current requirements and emerging
technologies. NIFTEM also conducts national-level online webinars on new food technologies and
domain-specific subjects for micro food processing entrepreneurs across the country.
Till 31st October 2025, NIFTEMs have developed 779 ODOP training modules, along with 199
presentations, 192 videos, 190 DPRs, and 198 handbooks/course materials, to support continuous learning
for beneficiaries.
The Scheme aims to expand incubation facilities in high-demand ODOP clusters, subject to feasibility and
proposals received from the State Governments. Further, the Scheme fosters collaborations with technical
institutions, agricultural universities, and industry bodies to enhance technology transfer, product
development, and testing services.
This information was given by the Minister of State for Food Processing Industries Shri Ravneet Singh in
a written reply in Lok Sabha today.
****
CMC-MoFPI
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