Executive Summary:
This document is the response to Lok Sabha Unstarred Question No. 1964 regarding the expansion of the Pradhan Mantri Formalisation of Micro Food Processing Enterprises (PMFME) Scheme since its launch in 2020-21. It provides details on the number of units supported, funds sanctioned and disbursed, and the Gross Value Added (GVA) of the food processing industry. Data is current as of June 30, 2025. A midterm evaluation recommends continuation of the scheme, but no proposal has been submitted to the government.
Key Points / Main Content:
Financial Support:
* 144,517 loans have been sanctioned for Credit Linked Subsidy to individual micro food processing units and groups (SHGs, FPOs, cooperatives) till June 30, 2025.
* The highest number of loans were sanctioned in FY 2023-24 (54,594), followed by FY 2024-25 (50,875). FY 2020-21 saw no loans sanctioned.
* A total of Rs. 3791.1 Crore of Centre Share was released to States/UTs till June 30, 2025.
* The highest amount of Centre Share was released in FY 2024-25 (Rs. 1142.6 Crore).
Component-wise Approvals:
* Credit Linked Subsidy: 144,517 applications sanctioned (Rs. 11501.79 Crore), broken down by category: General (49,035), SC (12,361), ST (7,566).
* Seed Capital: 348,907 applications sanctioned (Rs. 1182.48 Crore).
* Common Infrastructure: 93 applications sanctioned (Rs. 187.20 Crore).
* Branding/Marketing: 27 applications sanctioned (Rs. 82.82 Crore).
* Category-wise bifurcation of loan amounts for Seed Capital, Common Infrastructure and Branding/Marketing is not maintained.
Industry Performance:
* The GVA of the food processing industry has increased from Rs. 1.96 lakh crore in 2020-21 to Rs. 2.24 lakh crore in 2023-24.
* Employment in the food processing industry has increased from 2,036,874 in 2020-21 to 2,296,654 in 2022-23.
* The GVA of FPI is 1.39% of the overall GVA of the country.
Future of PMFME Scheme:
* A midterm evaluation recommends continuing the PMFME scheme beyond its current period.
* As of the date of this response, the Ministry of Food Processing Industries (MoFPI) has not submitted any proposal to the Government regarding continuation or expansion.
Impact Analysis:
Individual Micro Food Processing Units, SHGs, FPOs, Cooperatives:
* Impact: Access to credit-linked subsidies, seed capital, common infrastructure, and branding/marketing support to formalize and expand their businesses.
* Action Required: Apply for the relevant components of the PMFME scheme to avail financial assistance.
State Governments/Union Territories:
* Impact: Responsible for implementing the PMFME scheme and disbursing funds to beneficiaries.
* Action Required: Utilize the released Central Share effectively to support micro food processing enterprises in their respective regions.
Ministry of Food Processing Industries (MoFPI):
* Impact: Oversees the PMFME scheme and is responsible for its implementation and evaluation.
* Action Required: Consider submitting a proposal to the Government for the continuation or expansion of the PMFME scheme based on the midterm evaluation.
Key Entities Referenced
Pradhan Mantri Formalisation of Micro Food Processing Enterprises Scheme PMFME: A scheme by the Ministry of Food Processing Industries to support individual micro food processing units, SHGs, FPOs, and cooperatives.
Ministry of Food Processing Industries MoFPI: The Indian government ministry responsible for the food processing sector.
Gross Value Added GVA: A measure of the total value of goods and services produced in an economy or industry, in this context, specifically for the food processing industry.
SHGs, FPOs, cooperatives: Refers to Self-Help Groups, Farmer Producer Organizations, and cooperatives, which are types of groups supported by the PMFME scheme.
SHRI RAVNEET SINGH: The Minister of State for Food Processing Industries.
Central Statistics Office, Ministry of Statistics and Programme Implementation: Government agency responsible for statistical data collection and analysis, providing data related to Gross Value Added.
National Accounts Division: A division within the Central Statistics Office responsible for national accounts statistics.
Annual Survey of Industries: A survey conducted by the Ministry of Statistics and Programme Implementation to collect data on the industrial sector.
GOVERNMENT OF INDIA
MINISTRY OF FOOD PROCESSING INDUSTRIES
LOK SABHA
UNSTARRED QUESTION NO. 1964
ANSWERED ON 31ST JULY, 2025
EXPANSION OF PMFME SCHEME
1964. SMT. JYOTSNA CHARANDAS MAHANT:
Will the Minister of FOOD PROCESSING INDUSTRIES be pleased to state:
(a) the number of individual micro food processing units and groups (SHGs, FPOs,
cooperatives) supported under the Pradhan Mantri Formalisation of Micro Food Processing
Enterprises Scheme (PMFME) since its launch in 2020-21, year-wise;
(b) the total number of units approved for credit-linked subsidy, seed capital, common
infrastructure and branding/marketing support, category and component-wise;
(c) the total amount of funds sanctioned and disbursed under the scheme since 2020-21,
year-wise;
(d) whether the Government proposes to continue or expand the PMFME scheme beyond
its current period and if so, the specific timelines, financial outlays and revised targets
proposed; and
(e) the Gross Value Added (GVA) of the food processing industry in the country from 2020-
21 along with its percentage share in the Gross Domestic Product (GDP) and employment
contribution, year-wise?
ANSWER
THE MINISTER OF STATE FOR FOOD PROCESSING INDUSTRIES
(SHRI RAVNEET SINGH)
(a). Under the Pradhan Mantri Formalisation of Micro food processing Enterprises (PMFME)
Scheme, 1,44,517 Loans have been sanctioned for Credit Linked Subsidy to individual micro
food processing units and groups (SHGs, FPOs, cooperatives) till 30th June 2025. The year-
wise details of loans sanctioned are mentioned below:
Financial Year No. of Loans Sanctioned
FY 2020-21 0
FY 2021-22 3218
FY 2022-23 28492
FY 2023-24 54594
FY 2024-25 50875
FY 2025-26 7338
Total 1,44,517
(b). Under the PMFME Scheme, Component and Category wise total number of units approved
till 30th June 2025, are as follows:
Amount
No. of Applications
S.No. Component Sanctioned (Rs. in
Sanctioned
Crore)
1. Credit Linked Subsidy 1,44,517 11501.79*General 49,035 10629.26
SC 12,361 609.39
ST 7,566 263.14
2. Seed Capital** 3,48,907 1182.48
Common
3. 93 187.20
Infrastructure**
Branding &
4. 27 82.82
Marketing**
* Loan amount sanctioned
** Category-wise bifurcation of these components not maintained
(c). The details of year-wise Centre Share released to the Sates/ UTs for implementation of
various components of the scheme as on 30th June 2025, is mentioned below:
Amount of Centre Share Released
Financial Year
(Rs. in Crore)
FY 2020-21 367.6
FY 2021-22 297.44
FY 2022-23 268.52
FY 2023-24 765.3
FY 2024-25 1142.6
FY 2025-26 949.63
Total 3791.1
(d). Mid-term evaluation study of the PMFME Scheme conducted by a third party has
recommended for continuation of the PMFME Scheme beyond its current period. However, till
date, Ministry of Food Processing Industries (MoFPI) has not submitted any proposal to
Government in this regard.
(e). The GVA and employment in food processing Industry in India from 2020- 2021, as per
the latest data available, is as below:
Year 2020-21 2021-22 2022-23 2023-24
Gross Value Added (GVA)# 1.96 1.90 2.08 2.24
(Rs. In lakh crore)
#As per First Revised Estimates of National Accounts Division, Central Statistics
Office, Ministry of Statistics and Programme Implementation
Year 2020-21 2021-22 2022-23
Employment in FPI## 2036874 2068048 2296654
##As per the latest report of Annual Survey of Industries released by Ministry of
Statistics and Programme Implementation
Further, the GVA of FPI is 1.39% of overall GVA of the country.
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