**Executive Summary**
This document is a response to unstarred question No. 1905 in Lok Sabha, answered on December 11, 2025, regarding the PM Formalisation of Micro Food Processing Enterprises (PMFME) scheme. It outlines the steps taken by the Ministry of Food Processing Industries (MoFPI) to support micro-enterprises through credit linkage, measures to increase participation of women and SC/ST entrepreneurs, and financing for common service providers. The document reports progress on loan sanctions, seed capital disbursement, and capacity building as of October 31, 2025.
**Key Points / Main Content**
* **PMFME Scheme Implementation:**
* The MoFPI is implementing the PMFME Scheme to provide financial, technical, and business support to micro food processing enterprises.
* Loans are sanctioned by lending banks after appraisal of online proposals.
* Meetings with lending banks and State/UT governments are conducted to achieve targets.
* Issues faced by micro food processing enterprises are raised at the Department of Financial Services (DFS) level and in the State Level Bankers Committee (SLBC).
* Workshops, seminars, and awareness camps are conducted at various levels to promote the scheme.
* **Credit Linkage and Loan Sanctions:**
* Loans to 1,62,744 micro food processing enterprises have been sanctioned for credit-linked subsidy under the Scheme.
* The average loan approval time is approximately 50 days after DPR approval, depending on the submission of necessary documents.
* **Support for Women and SC/ST Entrepreneurs:**
* Annual allocation of funds earmarked under the Scheme is 8.3% for SC and 4.3% for ST entrepreneurs.
* Seed capital support of Rs. 40,000 per SHG member is provisioned for working capital and small tools for women SHG members.
* Between September 1 and October 31, 2025, loans were sanctioned for 4,521 women, 678 SC, and 761 ST entrepreneurs.
* Seed capital was sanctioned for 10,422 SHG members, totaling Rs. 38.19 crores.
* 4,629 women beneficiaries have been trained.
* **Financing for Common Service Providers:**
* No proposals for enhanced financing for common service providers have been finalized.
* Credit-linked capital subsidy @35% of the eligible project cost with a maximum ceiling of Rs. 3.00 crore is available for setting up of common infrastructure facilities.
* These facilities are available for micro food processing units on a hiring basis.
**Impact Analysis**
**Micro Food Processing Enterprises**
* **Impact:** Benefit from financial, technical, and business support for setting up/upgrading their enterprises. Can access credit-linked subsidy.
* **Action Required:** Prepare and submit DPR (Detailed Project Report) to lending banks, and provide necessary documents to authorities/banks.
**Women and SC/ST Entrepreneurs**
* **Impact:** Focused initiatives such as earmarked funds, seed capital, and capacity-building programs aim to increase their participation in the PMFME Scheme.
* **Action Required:** Apply for seed capital support through SHGs and participate in available capacity-building training.
**Lending Banks**
* **Impact:** Need to process and sanction loan applications from micro food processing enterprises under the PMFME Scheme.
* **Action Required:** Participate in meetings with MoFPI and State/UT governments.
**State/UT Governments**
* **Impact:** Responsible for implementing the PMFME Scheme and achieving the target of supporting two lakh micro enterprises.
* **Action Required:** Participate in meetings with MoFPI and lending banks.
**Farmer Producer Organizations (FPOs)/ Farmer Producer Companies (FPCs) / Cooperatives/ Self Help Groups (SHGs) and its Federation / Govt. Agencies**
* **Impact:** Eligible for credit-linked capital subsidy @35% of the eligible project cost with a maximum ceiling of Rs. 3.00 crore to establish common infrastructure facilities.
* **Action Required:** Apply for the available credit-linked capital subsidy to establish shared infrastructure facilities.
Key Entities Referenced
PM Formalisation of Micro Food Processing Enterprises (PMFME) Scheme: A centrally sponsored scheme by the Ministry of Food Processing Industries to provide financial, technical and business support for setting up and upgrading micro food processing enterprises in India.
Ministry of Food Processing Industries (MoFPI): The primary ministry responsible for implementing the PMFME Scheme.
State Level Bankers Committee (SLBC): Forum where issues faced by micro food processing enterprises are raised.
GOVERNMENT OF INDIA
MINISTRY OF FOOD PROCESSING INDUSTRIES
LOK SABHA
UNSTARRED QUESTION No. 1905
ANSWERED ON 11TH DECEMBER, 2025
PMFME CREDIT-LINKAGE COMPONENT
1905. SHRI JASHUBHAI BHILUBHAI RATHVA:
SHRI YOGENDER CHANDOLIA:
SHRI GANESH SINGH:
SHRI MAHENDRA SINGH SOLANKY:
SHRI SURESH KUMAR KASHYAP:
SHRI DILESHWAR KAMAIT:
SHRI BALABHADRA MAJHI:
SHRI PRADEEP KUMAR SINGH:
SHRI JUGAL KISHORE:
SHRI NABA CHARAN MAJHI:
SHRI SUKANTA KUMAR PANIGRAHI:
Will the Minister of FOOD PROCESSING INDUSTRIES be pleased to state:
(a) the steps being taken by the Government to achieve the credit linkage component for two
lakhs micro enterprises under the PM Formalisation of Micro Food Processing Enterprises
(PMFME) scheme and the average loan approval time after DPR approval in the country
including the constituency of Dewas-Shajapur, Madhya Pradesh and district of Himachal
Pradesh;
(b) the various new measures implemented under PMFME after August 2025 to increase the
participation of women and SC or ST entrepreneurs and the manner in which the impact of
higher subsidy in the said regions is being assessed; and
(c) whether the guidelines for enhanced financing for common service providers under the
said scheme have been finalised and the manner in which the said measures are likely to
strengthen shared infrastructure for numerous micro units in the said regions?
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" through State / UT
Governments for providing financial, technical and business support for setting up of new/
upgradation of micro food processing enterprises in the country. The loans to online proposals
submitted under the scheme are sanctioned by lending banks after appraisal. Against the target of
providing credit linked support to two lakhs micro food processing enterprises, loans to 1,62,744
micro food processing enterprises have been sanctioned for credit linked subsidy under the
Scheme.
MoFPI regularly conducts meeting with lending banks and State / UT Governments to
achieve the above targets. Also, the issues being faced by micro food processing enterprises are
raised at the Department of Financial Services (DFS) level and in the State Level Bankers
Committee (SLBC). Regular Workshops, Seminars and awareness camps are being conducted at
National, State and District level to increase the outreach and benefit of the scheme to the last mile
beneficiaries.The average loan approval time after DPR approval across the country including the
constituency of Dewas-Shajapur, Madhya Pradesh and district of Himachal Pradesh is around 50
days. However, the actual time depends on the submission of documents/ information by the
applicants to the concerned authorities/ lending banks as per the Scheme guidelines.
(b): As per the Scheme guidelines, the annual allocation of funds of 8.3% & 4.3% for SC & ST
entrepreneurs has been earmarked under the Scheme. There is no specific allocation of funds for
women entrepreneurs. For increasing women participation in the scheme, Seed Capital support of
Rs. 40000 per SHG member is provisioned for working capital and purchase of small tools for
women SHG members engaged in food processing activity.
No new measures have been implemented under the PMFME Scheme after August 2025.
However, the progress of the PMFME Scheme for women, SC & ST entrepreneurs after August
2025 i.e. from 01.09.2025 to 31.10.2025 are as under:
Credit Linked Subsidy: Loans for 4,521 women, 678 SC and 761 ST entrepreneurs have
been sanctioned
Seed capital: 10,422 SHG members have been sanctioned for an amount of Rs. 38.19
crores.
Capacity Building: 4629 women beneficiaries have been trained
(c): No such proposal for enhanced financing has been finalized by the Ministry under the
PMFME Scheme. However, as per the existing provisions in the scheme guidelines, credit-linked
capital subsidy @35% of the eligible project cost with a maximum ceiling of Rs. 3.00 crore is
provided for setting up of common infrastructure facilities by organizations such as Farmer
Producer Organizations (FPOs)/ Farmer Producer Companies (FPCs) / Cooperatives/ Self Help
Groups (SHGs) and its Federation / Govt. Agencies. These facilities are made available for micro
food processing units on hiring basis.
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