Date: 2026-05-22Category: Press ReleaseState: Union GovernmentCountry: India
Media Interaction on PMFME Scheme by Shri Devesh Deval highlights achievements in empowering Micro Food Processing Enterprises, Women Entrepreneurs and Rural Livelihoods
**Executive Summary**
Shri Devesh Deval, Joint Secretary of the Ministry of Food Processing Industries, conducted a media interaction on May 22, 2026, to highlight the progress and achievements of the PMFME Scheme. Launched in 2020 with an outlay of ₹10,000 crore, the scheme aims to formalize the unorganized food processing sector and empower rural livelihoods. Originally scheduled for 2020–21 to 2024–25, the implementation period has been extended until September 2026.
**Key Points / Main Content**
**Scheme Objectives and Framework**
* **Formalization:** Addresses challenges in the unorganized sector, including access to credit, modern technology, and market linkages.
* **ODOP Approach:** Utilizes the "One District One Product" strategy to achieve economies of scale; 137 unique products have been identified across 726 districts.
* **Partnership:** Implemented in collaboration with State and UT Governments to provide financial, technical, and business support.
**Financial and Technical Components**
* **Credit-Linked Subsidy:** Offers 35% subsidy for individuals (max ₹10 lakh) and groups such as FPOs and SHGs (max ₹3 crore for common infrastructure).
* **Seed Capital:** Provides ₹40,000 per SHG member for working capital and small tools.
* **Infrastructure and Training:** Includes the establishment of incubation centres for processing and testing, alongside structured capacity-building and EDP training.
* **Branding and Marketing:** Grants covering 50% of costs for groups to promote brands, trademark registration, and e-commerce onboarding via the GeM portal.
**Performance and Achievements**
* **Reach:** 1,96,270 individual enterprises supported, with more than 40% being women-led.
* **SHG Support:** Over 4 lakh SHG members approved for seed capital assistance.
* **Employment:** Approximately 5.88 lakh individuals have gained employment across the food processing value chain.
* **Market Integration:** Supported enterprises participated in major exhibitions like World Food India and AAHAR; ₹778 crores in subsidies were released during World Food India 2025.
* **Quality Standards:** Increased adoption of FSSAI registration and improved food safety and packaging standards among micro-enterprises.
**Impact Analysis**
**Individual Micro Food Processing Enterprises**
**Impact**
Enterprises benefit from increased access to formal credit, modern technology, and assistance in obtaining FSSAI registrations.
**Action Required**
Enterprises should seek handholding support from district-level resource persons for registration, application submission, and compliance.
**Self Help Groups (SHGs), FPOs, and Cooperatives**
**Impact**
These groups receive substantial grants for common infrastructure and branding, enabling them to compete in organized markets.
**Action Required**
SHG members must engage in the training programs provided and apply for seed capital to meet working capital requirements.
**Women Entrepreneurs**
**Impact**
The scheme specifically empowers women, who currently constitute over 40% of the beneficiaries under the credit-linked subsidy component.
**Action Required**
Continue utilizing the dedicated financial and technical support services to scale up or set up new enterprises.
**State and UT Governments**
**Impact**
Responsible for the ground-level implementation and deployment of resource persons to bridge gaps in the rural food processing ecosystem.
**Action Required**
Facilitate the onboarding of enterprises onto the GeM portal and ensure the effective functioning of local incubation centres.
Key Entities Referenced
Pradhan Mantri Formalisation of Micro Food Processing Enterprises (PMFME) Scheme: A centrally sponsored scheme with a ₹10,000 crore outlay designed to provide financial, technical, and business support for the upgradation of unorganised micro food processing units.
Ministry of Food Processing Industries: The primary nodal ministry responsible for implementing and overseeing the PMFME scheme across India.
One District One Product (ODOP): An operational approach within the scheme that identifies unique indigenous products across districts to enable economies of scale in procurement and marketing.
Aatmanirbhar Bharat Abhiyan: The national initiative under which the PMFME scheme was launched to foster self-reliance in the food processing sector.
Government e-Marketplace (GeM): A digital platform that signed an MoU with the Ministry to facilitate onboarding and provide market access to PMFME-supported enterprises.
Ministry of Food Processing Industries
Media Interaction on PMFME Scheme by Shri
Devesh Deval highlights achievements in
empowering Micro Food Processing Enterprises,
Women Entrepreneurs and Rural Livelihoods
Posted On: 22 MAY 2026 5:29PM by PIB Delhi
Shri Devesh Deval, Joint Secretary, Ministry of Food Processing Industries, addressed a media interaction
at Panchsheel Bhawan, New Delhi regarding the implementation and achievements of the Pradhan Mantri
Formalisation of Micro Food Processing Enterprises (PMFME) Scheme. During the interaction, the
Ministry highlighted the scheme’s growing impact on entrepreneurship, rural livelihoods, women-led
enterprises and market integration of micro food processing units.
The PMFME Scheme was launched by the Government of India in 2020 under the Ministry of Food
Processing Industries as part of the Aatmanirbhar Bharat Abhiyan. The scheme was conceptualised to
address the challenges faced by India’s unorganised micro food processing sector, which constitutes a
significant share of the country’s food processing industry (The unorganized food processing sector in the
country comprises nearly 25 lakh food processing enterprises which are unregistered and informal) but
has historically faced constraints related to access to credit, modern technology, branding, packaging,
quality standards and organised market linkages. Increasing food processing levels has been recognized as
critical for reducing wastage, improving farmers’ income realization, and generating employment.
However, dedicated institutional support for modernization and scaling up of micro food processing
enterprises remained limited. Accordingly, the centrally sponsored scheme was specifically designed to
bridge the gaps by addressing the challenges faced by micro-enterprises while leveraging the potential of
groups and cooperatives to drive upgradation, formalization, and sustainable growth of the sector.
Therefore, PMFME, the centrally sponsored scheme, with an outlay of Rs. 10,000 crore, was approved for
implementation during 2020-21 to 2024-25 and has been extended till September 2026.
The Scheme also operationalizes the One District One Product (ODOP) approach, enabling economies of
scale in procurement, common services, and market linkage, thereby strengthening the rural food
processing ecosystem. The scheme has so far identified 137 unique products across 726 districts in 35
States and Union Territories, ensuring that traditional and indigenous products receive focused support
and market visibility.
To realise the objectives, The Ministry is implementing the scheme in partnership with the State/ UT
Governments for the following financial, technical and business support services for setting up and
upgradation of micro food processing enterprises.
Key Components of PMFME Scheme
Credit-Linked Subsidy: 35% Subsidy for Individual Micro Food Processing Enterprises
(Maximum ₹10 lakh) to set up or upgrade their individual micro food processing enterprises.35% Credit-linked Subsidy for Farmer Producer Organisation (FPO), Farmer Producer Company
(FPC), Self Help Group (SHG), etc. to set up or upgrade Common Infrastructure (Maximum ₹3
Crore).
Seed Capital @ Rs. 40,000/- per Self Help Group (SHG) member engaged in food processing for
working capital and purchase of small tools.
Capacity Building: provides structured training, including EDP training for individual and group
applicants and training for SHG seed capital beneficiaries engaged in micro food processing.
Incubation Centres: Establishment and strengthening of Common Incubation Centre, to function
as local hubs for processing, training, testing and entrepreneurship development.
Branding & Marketing: 50% financial grant for Branding and Marketing Support to groups of
FPOs/SHGs/Cooperatives/Regional - State level SPV/ State Agencies (like SRLM or State level
Departments) to develop and promote their existing or proposed brands. Support for ODOP brands
in trademark registration, product standardization, packaging material, e-commerce and trade
promotion.
Handholding Support: Dedicated state and district-level resource persons have been deployed to
guide applicants through every stage of formalization—from registration, submission of application,
compliances, and standardization.
As on today, a total of 1,96,270 individual micro food processing enterprises have been supported under
the Credit Linked Subsidy component with more than 40% of beneficiaries being women
entrepreneurs. Seed Capital assistance has been approved for more than 4 lakhs SHG members. The
scheme has also covered 1,72,870 beneficiaries and other stakeholders under capacity building
programme.
The Ministry informed that 80 incubation centres have been approved under the scheme, of which 31
centres have already been commissioned to facilitate technology adoption, innovation and
entrepreneurship development which will benefit thousands of producers and entrepreneurs collectively.
Under Branding and Marketing support, 32 proposals and 40 ODOP brands have been approved, resulting
in the launch of more than 200 food products including millet-based products, GI-tagged items, pickles,
makhana products, spices, dairy and bakery products. A total of 1,164 micro enterprises have directly
benefited from branding and marketing assistance.
The Ministry further highlighted that MoFPI has also signed an MoU with the Government e-Marketplace
(GeM) o facilitate on boarding and market assistance for PMFME-supported enterprises on the GeM
portal.
Addressing the media, the Joint Secretary, FPI stated:
PMFME Scheme has emerged as a key intervention for strengthening India’s micro food processing
ecosystem by enabling access to finance, formalisation, training, branding, marketing and modern
market linkages for micro enterprises. The scheme is significantly empowering women
entrepreneurs, Self Help Groups and rural enterprises, while also contributing to employment
generation for around 5,88,810 individual enterprises across the food processing value chain and
strengthening local rural economies.
The Ministry also informed that PMFME beneficiaries have actively participated in national and
international exhibitions including World Food India, AAHAR and SIAL India, enabling enhanced market
access and product visibility. During the World Food India 2025, Credit-linked subsidy amounting to Rs.
778 crores was released to 26,000 beneficiaries by the Hon’ble Prime Minister. More than 100 PMFME
beneficiary stalls participated during the event, while around 250 PMFME products were showcased
through QR-code enabled digital displays linked to the PMFME Marketplace. Through initiatives like
these, the Ministry provides micro food processing enterprises with opportunities to showcase theirproducts, facilitates business-to-business (B2B) meetings for domestic and global market linkages. The
scheme's benefits and impact are evident in the numerous success stories of the beneficiaries, which the
Ministry regularly shares on its website and social media platforms.
The Ministry further highlighted that the PMFME Scheme has led to a marked increase in the
formalisation of micro food processing enterprises across the country, with a growing number of
entrepreneurs obtaining FSSAI registration and adopting improved food safety, quality and packaging
standards. The scheme has also contributed significantly to local employment generation, supporting
livelihood opportunities for around 5,88,810 individuals across the food processing value chain. By
strengthening processing, preservation and value addition infrastructure at the grassroots level, the scheme
has helped reduce post-harvest losses, enhance income opportunities for rural entrepreneurs and stimulate
local economic activity. The Ministry informed that PMFME Scheme continues to play a vital role in
empowering micro food processing enterprises, particularly women-led and community-based enterprises,
thereby strengthening rural economies through sustainable and inclusive entrepreneurship.
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