**Executive Summary**
The document provides information on the implementation of the Pradhan Mantri Formalization of Micro Food Processing Enterprises (PMFME) scheme. This centrally sponsored scheme aims to support unorganized micro food processing units by providing financial, technical, and business support. The scheme promotes local food traditions through the One District One Product (ODOP) approach. Loans under the PMFME Scheme have been sanctioned until 31st October 2025.
**Key Points / Main Content**
* **Scheme Overview**
* The Ministry of Food Processing Industries (MoFPI) is implementing the PMFME scheme.
* The scheme aims to enhance the competitiveness of micro-enterprises in the unorganized food processing sector and promote formalization.
* The PMFME scheme contributes to rural employment, food security, and value chain strengthening.
* **Financial Assistance**
* Credit-linked capital subsidy of 35% (max Rs. 10 lakh) for individual/group micro-enterprises.
* Seed capital of Rs. 40,000 per SHG member (max Rs. 4 lakh per SHG Federation) for working capital and tools.
* Credit-linked capital subsidy of 35% (max Rs. 3 crore) for common infrastructure to support FPOs, SHGs, Cooperatives, and any Government agency.
* Grant of up to 50% for Branding and Marketing to groups of FPOs/ SHGs/ Cooperatives or an SPV.
* **ODOP Promotion**
* The PMFME Scheme adopts the One District One Product (ODOP) approach to foster balanced regional development.
* Products are selected by States/UTs, considering the existing ecosystem.
* 726 districts across 35 States/UTs have approved ODOP, including GI-tagged products.
* **Beneficiaries**
* Loans sanctioned to 1363 Self Help Groups (SHGs), 236 Farmer Producer Organisations (FPOs), and 1,61,072 micro food processing enterprises as of October 31, 2025.
* **Capacity Building**
* The scheme offers Entrepreneurship Development Program (EDP) training modified to meet food processing industry requirements and product-specific skilling.
**Impact Analysis**
**Micro Food Processing Enterprises:**
* **Impact:** Access to financial, technical, and business support for setting up or upgrading their operations, increasing competitiveness, and formalizing their businesses.
* **Action Required:** Understand the eligibility criteria for financial assistance and training programs under the scheme, and apply for relevant support.
**Self Help Groups (SHGs):**
* **Impact:** Access to seed capital for members engaged in food processing and opportunities to improve their livelihoods and contribute to the rural economy.
* **Action Required:** Organize members to apply for seed capital and training programs under the PMFME scheme.
**Farmer Producer Organizations (FPOs):**
* **Impact:** Access to financial support for common infrastructure, opportunities for branding and marketing, and enhanced market integration.
* **Action Required:** Develop proposals for common infrastructure and branding/marketing support and apply for relevant assistance.
**State Governments/Union Territories:**
* **Impact:** Responsible for the selection of ODOP, considering the existing ecosystem on the ground.
* **Action Required:** Need to work with the Districts for ODOP adoption and implementation of the PMFME scheme.
Key Entities Referenced
Pradhan Mantri Formalisation of Micro Food Processing Enterprises (PMFME) Scheme: A centrally sponsored scheme by the Government of India to support unorganized micro food processing units through financial, technical, and business support.
Ministry of Food Processing Industries (MoFPI): The central ministry responsible for implementing the PMFME Scheme.
One District One Product (ODOP): An approach adopted by the PMFME Scheme to foster balanced regional development across all districts of the country by selecting, branding, and promoting at least one product from each district.
Self Help Groups (SHGs): Organizations that are provided loans for credit linked subsidy under the PMFME Scheme.
Farmer Producer Organisations (FPOs): Organizations that are provided loans for credit linked subsidy under the PMFME Scheme.
GOVERNMENT OF INDIA
MINISTRY OF FOOD PROCESSING INDUSTRIES
LOK SABHA
UNSTARRED QUESTION No. 823
ANSWERED ON 04TH DECEMBER, 2025
IMPLEMENTATION OF PMFME
823. DR. LATA WANKHEDE:
DR. D. PURANDESWARI:
SHRI ATUL GARG:
SHRI RAJESH VERMA:
SMT. SHAMBHAVI:
Will the Minister of FOOD PROCESSING INDUSTRIES be pleased to state:
(a) whether the Government is implementing the Pradhan Mantri Formalization of Micro
Food Processing Enterprises (PMFME) scheme to support unorganized micro units and if so, the
details thereof;
(b) the assistance provided for credit, training, branding, and marketing under the scheme;
(c) the number of Self Help Groups (SHGs), Farmer Producer Organisations (FPOs) and
micro-entrepreneurs benefitted across the country;
(d) whether the scheme promotes local food traditions, GI-tagged products and One District
One Product (ODOP) model and if so, the details thereof; and
(e) the manner in which PMFME contributes to rural employment, food security and value
chain strengthening in the food processing sector?
ANSWER
THE MINISTER OF STATE FOR FOOD PROCESSING INDUSTRIES
(SHRI RAVNEET SINGH)
(a) & (b). 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. 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.
The details of financial assistance available to Micro Food Processing Enterprises under PMFME
Scheme are at Annexure.
(c). Under the PMFME Scheme, loans for credit linked subsidy have been sanctioned to 1363 Self
Help Groups (SHGs), 236 Farmer Producer Organisations (FPOs) and 1,61,072 micro food
processing enterprises till 31st October 2025.
(d). To promote Vocal for Local Initiative in food processing sector, the PMFME Scheme primarily
adopts One District One Product (ODOP) approach aimed at fostering balanced regional
development across all districts of the country. The initiative aims to select, brand, and promote at
least One Product from each District (One District One Product) of the country for enabling holistic
socioeconomic growth across all regions. Under the ODOP initiative, all products have been selected
by States/UTs by taking into consideration the existing ecosystem on the ground, products identified
under Districts. ODOP have been approved for 726 Districts across 35 States/ UTs under the Scheme
including GI-tagged products.(e). The PMFME Scheme serves as a key catalyst for rural economic growth, food security, and
value chain strengthening by expanding and formalising micro-enterprises, generating local
employment, particularly through FPOs, SHGs, and common infrastructure, and fostering
entrepreneurship. It improves food security by reducing post-harvest losses, enhancing processing
efficiency, extending shelf life of ODOP and other agri-food products, and ensuring year-round
availability of safe, nutritious food. The scheme also strengthens value chains by promoting district-
specific ODOP interventions, supporting technology adoption through credit and capacity building,
creating shared infrastructure for efficient aggregation and processing, and enabling better market
integration through linkages with e-commerce, retail, and institutional buyers.
*****Annexure
ANNEXURE REFERRED TO IN REPLY TO PART (a) & (b) OF THE LOK SABHA
UNSTARRED QUESTION NO. 823 FOR ANSWER ON 04.12.2025 REGARDING
“IMPLEMENTATION OF PMFME”
The details of financial assistance available 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% 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.