**Executive Summary**
The document is the response to Lok Sabha Unstarred Question No. 858, answered on December 4th, 2025, regarding the PM Formalisation of Micro Food Processing Enterprises (PM-FMFPE) Scheme. The response details the scheme's components, financial outlays, loan sanctions, and the number of registered micro food units, with data updated till October 31st, 2025. The scheme is operational from 2020-21 to 2025-26.
**Key Points / Main Content**
* **PM-FMFPE Scheme Overview:**
* Implemented by the Ministry of Food Processing Industries (MoFPI).
* Provides financial, technical, and business support for new and existing micro food processing enterprises.
* Operational from 2020-21 to 2025-26, with an outlay of Rs. 10,000 Crore.
* Aims to enhance competitiveness and promote formalization of the unorganized food processing sector.
* **Financial Assistance:**
* Available details for financial assistance are in Annexure-I.
* Credit-linked capital subsidy: 35% of eligible project cost, max. ceiling Rs.10 lakh per unit.
* Seed capital for SHGs: Rs. 40,000 per member engaged in food processing.
* Support for common infrastructure: Credit-linked capital subsidy @35%, max. 3 crore.
* Branding & Marketing: Grant upto 50% for groups of FPOs/ SHGs/ Cooperatives.
* **Fund Release & Loans:**
* Centre Share of Rs. 4306.4 crores released to States/UTs till October 31st, 2025 (State-wise details in Annexure II).
* 1,62,744 loans sanctioned across the country till October 31st, 2025. (Year-wise and State-wise details in Annexure III).
* **Registered Units:**
* 42,801 registered food processing units including micro food units as per the Annual Survey of Industries (ASI) 2022-23 (State-wise details in Annexure IV).
* **Branding & Marketing Component:**
* Provides up to 50% of eligible project cost to FPOs, cooperatives, SHGs, and State/regional SPVs for developing a common umbrella brand.
* Supports packaging, branding, quality control, standardization, and food safety.
* Aims to enhance awareness, simplify access, provide technical and financial support for packaging, labelling and common ODOP branding.
* Facilitates tie-ups with retail, e-commerce, and export agencies; improving common facilities.
* **Common Facility Centres (CFCs):**
* Support for CFC creation @ 35% of eligible project cost, maximum limit of Rs. 3 Crore to Farmer Producer Organizations.
* CFCs include food processing lines, common infrastructure, value chain, and incubation centers.
* Aims to ensure that the common infrastructure facilities are accessible and affordable.
* Setting up CFCs in hilly, tribal and aspirational districts, adopting hub-and-spoke, subsidizing user charges, and enabling village-level mobilization through District Resource Persons (DRPs).
**Impact Analysis**
**Micro Food Processing Enterprises:**
* **Impact:** Enhanced competitiveness, access to financial and technical support for upgrades, increased market visibility.
* **Action Required:** Understand and apply for the available financial assistance and actively participate in branding and marketing initiatives.
**Farmer Producer Organizations (FPOs), Self Help Groups (SHGs), Cooperatives, Government Agencies**
* **Impact:** Receive support for establishing common infrastructure and marketing initiatives, potential for increased revenue.
* **Action Required:** Apply for support to establish CFCs and participate in the branding and marketing initiatives to enhance product visibility.
**States/Union Territories:**
* **Impact:** Responsible for implementing the scheme and disbursing funds to eligible beneficiaries.
* **Action Required:** Ensure effective implementation of the scheme and provide necessary support to micro food processing enterprises.
Key Entities Referenced
PM Formalisation of Micro Food Processing Enterprises Scheme (PMFME): Centrally sponsored scheme providing financial, technical, and business support for micro food processing enterprises
Ministry of Food Processing Industries (MoFPI): The ministry implementing the PMFME Scheme
Chhattisgarh: One of the states mentioned as benefitting from the PMFME scheme
GOVERNMENT OF INDIA
MINISTRY OF FOOD PROCESSING INDUSTRIES
LOK SABHA
UNSTARRED QUESTION No. 858
ANSWERED ON 04TH DECEMBER, 2025
PM FORMALISATION OF MICRO FOOD PROCESSING ENTERPRISES SCHEME
858. SHRI BRIJMOHAN AGRAWAL:
Will the Minister of FOOD PROCESSING INDUSTRIES be pleased to state:
(a) the details of PM Formalisation of Micro Food Processing Enterprises (PM-FMFPE) scheme
and its budgetary layout with components, State-wise including Chhattisgarh;
(b) the number of loans sanctioned under various components of the scheme till date and the
details of beneficiaries for each financial year till date under the respective components, State-wise;
(c) the number of registered micro food units in the country, State-wise;
(d) the manner in which the Government plans to boost the uptake and effective implementation
of the Branding and Marketing component vital for enabling micro units to achieve the vocal for
local vision and compete successfully in national and international markets; and
(e) whether targeted steps are being taken to ensure that these common infrastructure resources
are accessible, affordable and practically utilized by the smallest and most remote micro
entrepreneurs who may face geographical or logistical barriers, if so, the details thereof?
ANSWER
THE MINISTER OF STATE FOR FOOD PROCESSING INDUSTRIES
(SHRI RAVNEET SINGH)
(a). 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 is operational from 2020-21 to 2025-26 with an outlay of Rs. 10,000 Crore.
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-I.
The Centre Share of Rs. 4306.4 crores have been released to States/UTs for implementation of various
components of the scheme including the State of Chhattisgarh till 31st October 2025. The State -wise
details are at Annexure II.
(b). 1,62,744 loans have been sanctioned for the credit linked subsidy across the country till 31st October
2025. The details of Year-wise and State-wise loans sanctioned under the PMFME Scheme are at
Annexure III.
(c). As per the latest report of Annual Survey of Industries (ASI) for the year 2022-23, the total number
of registered food processing units including micro food processing units are 42,801. The State-wise
details are at Annexure IV.
(d). Under the Branding & Marketing component of PMFME Scheme, grant of upto 50% of the eligible
project cost is provided to groups of FPOs, cooperatives, SHGs and State or regional SPVs of micro
food processing enterprises to develop a common umbrella brand at the State or regional level. Thecomponent provides support in areas such as packaging & branding, quality control, standardization,
and food safety adherence for consumer retail sales. The Government aims to strengthen the Branding
and Marketing component by enhancing awareness, simplifying access, and providing technical and
financial support for packaging, labelling, and common ODOP branding. It is facilitating tie-ups with
retail, e-commerce, and export agencies, improving common facilities, and promoting local products
through targeted campaigns, enabling micro units to build strong market identities and compete
effectively at national and global levels. These measures aim to enable micro food processing enterprises
to enhance product visibility, achieve the Vocal for Local vision, and compete effectively in national and
international markets.
(e). Under the PMFME Scheme, support for creation of Common Facility Centre (CFC) is provided @
35% of eligible project cost with maximum limit of Rs. 3 Crore to Farmer Producer Organizations
(FPOs)/ Self Help Groups (SHGs) and its Federations/ Cooperatives/ Government Agencies to establish
food processing line along with common infrastructure/ value chain/ incubation centre. Substantial
capacity of the CFC is available for use by other units and public on hiring basis. The common
infrastructure facilities under the PMFME Scheme are accessible and affordable for even the smallest
and most remote micro entrepreneurs. These include setting up CFCs in hilly, tribal and aspirational
districts, adopting hub-and-spoke, subsidizing user charges, and enabling village-level mobilization
through District Resource Persons (DRPs).
*****Annexure-I
ANNEXURE REFERRED TO IN REPLY TO PART (a) OF THE LOK SABHA UNSTARRED
QUESTION NO. 858 FOR ANSWER ON 04.12.2025 REGARDING “PM FORMALISATION
OF MICRO FOOD PROCESSING ENTERPRISES SCHEME”
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.Annexure-II
ANNEXURE REFERRED TO IN REPLY TO PART (a) OF THE LOK SABHA UNSTARRED
QUESTION NO. 858 FOR ANSWER ON 04.12.2025 REGARDING “PM FORMALISATION
OF MICRO FOOD PROCESSING ENTERPRISES SCHEME”
State/ UT wise details of Centre Share funds released till 31.10.2025
S.No. States/ UTs Centre Share (in Rs. Cr.)
1 Andaman & Nicobar Island 4.47
2 Andhra Pradesh 185.83
3 Arunachal Pradesh 36.62
4 Assam 198.16
5 Bihar 364.39
6 Chandigarh 2.21
7 Chhattisgarh 45.04
8 D & N Haveli & D n D 1.43
9 Delhi 7.71
10 Goa 14.94
11 Gujarat 61.08
12 Haryana 73.93
13 Himachal Pradesh 112.70
14 Jammu & Kashmir 46.55
15 Jharkhand 59.22
16 Karnataka 272.77
17 Kerala 167.10
18 Ladakh 7.06
19 Lakshadweep 1.01
20 Madhya Pradesh 263.53
21 Maharashtra 646.25
22 Manipur 16.23
23 Meghalaya 24.37
24 Mizoram 20.67
25 Nagaland 30.67
26 Odisha 140.58
27 Puducherry 9.45
28 Punjab 199.88
29 Rajasthan 83.22
30 Sikkim 26.79
31 Tamil Nadu 362.19
32 Telangana 202.75
33 Tripura 28.49
34 Uttar Pradesh 510.98
35 Uttarakhand 43.97
36 West Bengal 33.78
TOTAL 4,306.04Annexure-III
ANNEXURE REFERRED TO IN REPLY TO PART (b) OF THE LOK SABHA UNSTARRED
QUESTION NO. 858 FOR ANSWER ON 04.12.2025 REGARDING “PM FORMALISATION
OF MICRO FOOD PROCESSING ENTERPRISES SCHEME”
State/UT wise & Year-wise loans sanctioned for Credit Linked Subsidy under PMFME Scheme as
on 31st October 2025
S. States and 2021- 2022- 2023- 2024- 2025- No. of Loans
No. UTs 2022 2023 2024 2025 2026 Sanctioned
1 A&N 6 4 8 0 0 18
Andhra
306 2808 2237 1667 1069 8087
2 Pradesh
Arunachal
1 21 28 48 38 136
3 Pradesh
4 Assam 39 659 633 1769 1500 4600
5 Bihar 91 2923 10284 10273 4152 27723
6 Chandigarh 5 0 0 5
7 Chhattisgarh 24 211 350 396 299 1280
8 D&D 0 2 5 0 5 12
9 Delhi 21 81 103 74 84 363
10 Goa 2 42 23 36 34 137
11 Gujarat 5 103 286 314 302 1010
12 Haryana 74 329 606 352 272 1633
Himachal
156 603 550 496 732 2537
13 Pradesh
14 J&K 35 170 480 682 571 1938
15 Jharkhand 0 198 1527 1851 674 4250
16 Karnataka 259 1823 2011 2329 1302 7724
17 Kerala 59 807 2573 3116 1382 7937
18 Ladakh 6 26 33 17 8 90
Lakshadweep 0 0 0 0 0 0
Madhya
237 1426 2692 5103 2486 11944
19 Pradesh
20 Maharashtra 636 6040 9493 7546 2457 26172
21 Manipur 180 67 13 31 17 308
22 Meghalaya 5 26 44 120 32 227
23 Mizoram 0 7 13 20 16 56
24 Nagaland 0 25 155 188 61 429
25 Odisha 149 620 627 731 605 2732
26 Puducherry 1 58 54 51 28 192
27 Punjab 134 837 1183 525 342 3021
28 Rajasthan 98 192 242 513 306 1351
29 Sikkim 2 31 20 8 4 65
30 Tamil Nadu 288 3717 7666 3587 1952 17210
31 Telangana 163 2067 3500 1136 400 7266
32 Tripura 7 43 63 77 58 248
33 Uttar Pradesh 212 2304 6654 7449 3956 20575
34 Uttarakhand 17 222 416 221 161 1037
35 West Bengal 0 22 149 260 431
Grand Total 3218 28492 54594 50875 25565 162744Annexure-IV
ANNEXURE REFERRED TO IN REPLY TO PART (c) OF THE LOK SABHA UNSTARRED
QUESTION NO. 858 FOR ANSWER ON 04.12.2025 REGARDING “PM FORMALISATION
OF MICRO FOOD PROCESSING ENTERPRISES SCHEME”
State-wise details of registered food processing units
S. No. State No. of Units
(as per ASI*)
1 A & N Islands 6
2 Andhra Pradesh 5427
3 Arunachal Pradesh 51
4 Assam 1750
5 Bihar 953
6 Chandigarh 19
7 Chhattisgarh 2225
8 Dadra & Nagar Haveli and Daman & Diu 33
9 Delhi 151
10 Goa 96
11 Gujarat 2585
12 Haryana 1008
13 Himachal Pradesh 162
14 Jammu and Kashmir 184
15 Jharkhand 266
16 Karnataka 2405
17 Kerala 1725
18 Ladakh 8
19 Lakshadweep 0
20 Madhya Pradesh 1096
21 Maharashtra 2820
22 Manipur 38
23 Meghalaya 30
24 Mizoram 29
25 Nagaland 17
26 Odis4ha 1356
27 Puducherry 68
28 Punjab 3457
29 Rajasthan 980
30 Sikkim 18
31 Tamil Nadu 4996
32 Telangana 3702
33 Tripura 131
34 Uttar Pradesh 2407
35 Uttarakhand 374
36 West Bengal 2230
Total 42803
Source: *Annual Survey of Industries 2022-23,