## Policy Summary: Support for Spice Clusters under PMFME Scheme
This document summarizes the Indian Ministry of Food Processing Industries' response to a parliamentary question regarding the inclusion of traditional spice clusters, specifically Khari Baoli and surrounding areas in Chandni Chowk, under the Pradhan Mantri Formalisation of Micro Food Processing Enterprises (PMFME) scheme and the One District One Product (ODOP) approach.
The Ministry confirms that the PMFME scheme, a centrally sponsored program, provides financial, technical, and business support for establishing and upgrading micro food processing enterprises across the country, including the National Capital Territory (NCT) of Delhi. While Bakery Products are designated as the ODOP for Central Delhi, the scheme extends support to both ODOP and non-ODOP enterprises within the UT of Delhi, encompassing the Khari Baoli spice clusters.
As of August 21, 2025, 20 loans have been sanctioned under the PMFME scheme for micro food processing enterprises in Central Delhi through credit-linked subsidies. Of these, one loan specifically supports a spice-based micro food processing enterprise.
The PMFME scheme offers the following support mechanisms:
* **Individual/Group Micro Enterprises:** Credit-linked capital subsidy of 35% of the eligible project cost, with a maximum ceiling of Rs. 10 lakh per unit, for Plant and Machinery and Technical Civil Work.
* **Common Infrastructure:** Credit-linked capital subsidy of 35%, up to a maximum of Rs. 3 crore, is available to Farmer Producer Organizations (FPOs), Self-Help Groups (SHGs), Cooperatives, and government agencies for establishing common infrastructure facilities. This includes food processing lines and value chain incubation centers.
Key Entities Referenced
SHRI RAVNEET SINGH: The Minister of State for Food Processing Industries who provided the answer to the parliamentary question.
Ministry of Food Processing Industries (MoFPI): The Indian government ministry responsible for food processing policies and schemes.
PM Formalisation of Micro food processing Enterprises (PMFME) Scheme: A centrally sponsored scheme for providing financial, technical and business support for setting up or upgrading micro food processing enterprises in India.
One District One Product (ODOP): An approach adopted by the PMFME Scheme to leverage scale in procurement, common services, and product marketing, focusing on a specific product per district.
SHRI PRAVEEN KHANDELWAL: The Member of Parliament who raised the question regarding the inclusion of spice clusters under government schemes.
Khari Baoli: A traditional spice market in Chandni Chowk, NCT of Delhi, specifically mentioned in the context of inclusion under government schemes.
Chandni Chowk: A well-known area in NCT of Delhi that contains Khari Baoli and other spice clusters.
Central Delhi: A district in NCT of Delhi where Bakery Products have been identified as the One District One Product (ODOP).
GOVERNMENT OF INDIA
MINISTRY OF FOOD PROCESSING INDUSTRIES
LOK SABHA
UNSTARRED QUESTION No. 4828
ANSWERED ON 21ST AUGUST, 2025
INCLUSION OF TRADITIONAL SPICE CLUSTERS UNDER PMFME
4828. SHRI PRAVEEN KHANDELWAL:
Will the Minister of FOOD PROCESSING INDUSTRIES be pleased to state:
(a) whether Khari Baoli and surrounding spice clusters in Chandni Chowk have been
included under any scheme of the Government such as the Pradhan Mantri
Formalisation of Micro Food Processing Enterprises (PMFME) or the One District One
Product (ODOP) and if so, the details thereof;
(b) the number of micro food processors from the constituency who have availed support
under the above-mentioned schemes; and
(c) whether the Government plans to upgrade processing, packaging or cold storage
infrastructure in such traditional markets and if so, the details thereof?
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 including NCT of Delhi. The Scheme primarily
adopts One District One Product (ODOP) approach to reap the benefit of scale in terms of
procurement of inputs, availing common services and marketing of products.
Bakery Products have been identified as ODOP for the district of Central Delhi based on the
recommendations of UT Government. The scheme envisages support for ODOP as well as
Non-ODOP in UT of Delhi including Khari Baoli and surrounding spice clusters of Chandni
Chowk. Under the PMFME Scheme, 20 loans have been sanctioned for micro food processing
enterprises under credit linked subsidy in Central Delhi out of which 1 loan has been sanctioned
for Spice based micro food processing enterprises.
(c): Under the PMFME Scheme, the following support is provided to eligible applicants for
setting up/ upgradation of micro food processing enterprises and also establishment of
Common Infrastructure facilities:
(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 for Plant and
Machinery & Technical Civil Work;
(ii). 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 facilities having food processing line along with
Common Infrastructure/ value chain/ incubation centre for financial assistance under the
component.
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