**Executive Summary**
This document is the official response from the Ministry of Food Processing Industries, Government of India, to Unstarred Question No. 221 in the Lok Sabha, answered on January 29, 2026. It pertains to the financial assistance provided for the upgradation of micro food processing units under the Pradhan Mantri Formalisation of Micro Food Processing Enterprises (PMFME) scheme. Annexures provide details on the financial assistance and district-wise applications for the last three years.
**Key Points / Main Content**
* **PMFME Scheme Overview:**
* Provides financial assistance for upgrading micro food processing units.
* Supports processing, branding, and marketing of local produce under the One District One Product (ODOP) approach.
* **Financial Assistance Details (Annexure-I):**
* Individual/Group Micro Enterprises: Credit-linked capital subsidy @35% of project cost (max Rs. 10 lakh).
* SHGs: Seed capital @ Rs. 40,000 per member for working capital and tools (max Rs. 4 lakh per SHG Federation).
* Common Infrastructure: Credit-linked capital subsidy @35% of project cost (max Rs. 3 crore).
* Branding and Marketing: Grant up to 50% for groups of FPOs/SHGs/Cooperatives.
* Capacity Building: Entrepreneurship Development Skilling (EDP) program modified for the food processing industry.
* **Implementation & Monitoring:**
* Ministry conducts meetings with lending banks and State Governments.
* Issues are raised at Department of Financial Services (DFS) and State Level Bankers Committee (SLBC) meetings.
* Periodic review meetings are held at state and district levels.
* PMFME Management Information System (MIS) captures district-wise data.
* **ODOP Support:**
* Credit-linked grant @ 35% (max Rs. 10 lakh) for upgrading/setting up units.
* Support for SHGs/FPOs/Cooperatives through credit-linked subsidy @ 35%, Seed Capital, Incubation, Infrastructure, Branding, and Capacity Building.
* Grant-in-aid to boost visibility and sales. Strategic tie-ups with retail chains and Government e-Marketplace (GeM).
**Impact Analysis**
**Micro Food Processing Enterprises**
* **Impact:** Increased access to financial assistance and support for upgrading facilities, improving market access, and building capacity.
* **Action Required:** Apply for available schemes, participate in training programs, and utilize resources for branding and marketing.
**Self Help Groups (SHGs), Farmer Producer Organizations (FPOs), Cooperatives**
* **Impact:** Access to financial support for seed capital, infrastructure development, and branding initiatives.
* **Action Required:** Apply for funding opportunities, participate in collaborative projects, and enhance capacity building.
**Lending Banks**
* **Impact:** Expected to sanction projects based on their policy, within the context of the PMFME scheme.
* **Action Required:** Attend regular meetings with government and state officials to address challenges faced by micro food processing enterprises.
**State Governments**
* **Impact:** Responsible for implementation, monitoring, and support to beneficiaries at the district level.
* **Action Required:** Conduct regular reviews, engage District Resource Persons (DRPs), and participate in meetings with lending banks and the Ministry.
Key Entities Referenced
Pradhan Mantri Formalisation of Micro Food Processing Enterprises (PMFME) Scheme: A scheme to provide financial assistance for upgradation of micro food processing units.
Ministry of Food Processing Industries: The primary ministry responsible for the scheme mentioned in the document.
One District One Product (ODOP): An approach used by the PMFME scheme to promote processing, branding and marketing of local produce.
Etah-Kasganj, Aonla, and Jaunpur Parliamentary Constituencies: Specific locations mentioned in the question regarding the applicability of the scheme.
Annexure-I: Details of financial assistance offered to the enterprises under Pradhan Mantri Formalisation of Micro Food Processing Enterprises (PMFME) Scheme.
GOVERNMENT OF INDIA
MINISTRY OF FOOD PROCESSING INDUSTRIES
LOK SABHA
UNSTARRED QUESTION No. 221
ANSWERED ON 29TH JANUARY, 2026
FINANCIAL ASSISTANCE FOR UPGRADATION OF MICRO FOOD PROCESSING
UNITS
221. SHRI NEERAJ MAURYA:
SHRI DEVESH SHAKYA:
Will the Minister of FOOD PROCESSING INDUSTRIES be pleased to state:
(a) whether financial assistance has been provided for the upgradation of micro food
processing units in Etah-Kasganj, Aonla and Jaunpur Parliamentary Constituencies under
the Pradhan Mantri Formalisation of Micro Food Processing Enterprises (PMFME)
scheme;
(b) if so, the details of the total number of applications received, approved and the number of
units actually set up/upgraded in the said Constituencies during the last three years, district-
wise;
(c) whether several eligible beneficiaries have not been able to avail complete benefits of the
scheme due to delays in approval of bank loans, lack of technical assistance or lack of
market linkages and if so, the details thereof;
(d) the specific steps taken by the Government to promote processing, branding and marketing
of local produces under the One District One Product (ODOP) based approach; and
(e) whether the Government is considering to have a special review and time bound
interference for the effective implementation of above said scheme in the aforesaid
Parliamentary Constituencies and if so, the details thereof?
ANSWER
THE MINISTER OF STATE FOR FOOD PROCESSING INDUSTRIES
(SHRI RAVNEET SINGH)
(a) & (b): The details of financial assistance eligible for micro food enterprises under Pradhan
Mantri Formalisation of Micro Food Processing Enterprises (PMFME) Scheme across the country
including Etah-Kasganj, Aonla and Jaunpur Parliamentary Constituencies are at Annexure-I. The
district-wise details for total applications received, sanctioned and disbursed in the said
constituencies during last three years is at Annexure-II.
(c): The success rate of sanctioning by the lending banks is 42% which is at par with most of
the government sponsored Credit Linked Schemes. The bank sanctions the projects based on their
policy, however regular meetings are held with lending banks and State Government to address
the problems being faced by micro food processing enterprises. Support to upgrade existing units
or setting up of new micro units is provided through a credit linked grant @ 35% with maximum
grant of Rs.10 lakh. The Scheme also provides support to food processing units of SHGs/ FPOs/
Cooperatives for credit-linked subsidy @ 35%, Seed Capital to Self Help Groups (SHGs),
Incubation Centre, Common Infrastructure, Branding & Marketing and Capacity Building. Underthe Branding and Marketing component, support is provided to groups of FPOs, SHGs,
cooperatives, or Special Purpose Vehicles (SPVs) of micro food processing enterprises, with a
grant of upto 50% of the eligible project cost, following the cluster approach for developing a
common brand with provision for quality control, standardisation, packaging and adhering to food
safety parameters for consumer retail sale.
In addition to this, District Resource Persons (DRPs) are also engaged at the district level by the
States to provide continuous handholding support to beneficiaries.
(d): Under the One District One Product (ODOP) approach of PMFME Scheme, Support to
upgrade existing units or setting up of new micro units is provided through a credit linked grant @
35% with maximum grant of Rs.10 lakh. The Scheme also provides support to food processing
units of SHGs/ FPOs/ Cooperatives for credit-linked subsidy@35%, Seed Capital to Self Help
Groups (SHGs), Incubation Centre, Common Infrastructure, Branding & Marketing and Capacity
Building.
The scheme provides grant-in-aid through its Branding and Marketing support to help micro
food processing enterprises with limited market access to boost the visibility and sales of their
products. This is achieved through strategic tie-ups with regional and national retail chains.
Memorandum of Understanding (MoU) with Government e-Marketplace (GeM) portal has been
done to facilitate marketing of products manufactured by the units supported under PMFME
Scheme.
(e): Ministry regularly conducts meeting with lending banks and State Government. The issues
being faced by micro food processing enterprises are also raised at the Department of Financial
Services (DFS) level and in the State Level Bankers Committee (SLBC) meetings to discuss and
resolve implementation challenges. Further, periodic review meetings are also conducted at state
and district level by the State government.
Monitoring is further strengthened through the PMFME Management Information System
(MIS), which captures district-wise data on applications received, loans sanctioned, funds
disbursed, and unit-level outcomes.
*****ANNEXURE-I
ANNEXURE REFERRED TO IN REPLY TO PART (a) & (b) OF THE LOK SABHA
UNSTARRED QUESTION NO. 221 FOR ANSWER ON 29.01.2026 REGARDING
“FINANCIAL ASSISTANCE FOR UPGRADATION OF MICRO FOOD PROCESSING
UNITS”
The details of financial assistance offered to the enterprises under Pradhan Mantri Formalisation
of Micro Food Processing 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% of the eligible
project cost 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
Skilling (EDP) program modified to meet the requirement of food processing industry.
*****ANNEXURE-II
ANNEXURE REFERRED TO IN REPLY TO PART (a) & (b) OF THE LOK SABHA UNSTARRED QUESTION NO. 221
FOR ANSWER ON 29.01.2026 REGARDING “FINANCIAL ASSISTANCE FOR UPGRADATION OF MICRO FOOD
PROCESSING UNITS”
FY 2022-23 FY 2023-24 FY 2024-25
s. Loans Loans Loans Loans Loans Loans
N Dist Applications Sanctione Disburse Applications Sanctione Disburse Applications Sanctione Disburse
o. ricts submitted d d submitted d d submitted d d
Bare
1 100 43 19 280 152 100 307 133 125
illy
Bud
2 23 5 3 51 15 6 79 26 18
aun
3 Etah 36 6 5 98 32 29 69 29 23
Jaun
4 60 33 11 325 186 163 254 94 79
pur
Kas
5 50 5 1 232 55 49 85 12 12
ganj
*****