Parliament Question: PM Formalisation of Micro Food Processing Enterprises 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,