The Pradhan Mantri Formalisation of Micro Food Processing Enterprises (PMFME) Scheme, initiated under Aatmanirbhar Bharat Abhiyan, endeavors to uplift the unorganized sector. Launched on June 29, 2020, by the Ministry of Food Processing Industries, it aims to integrate micro food processing units with formalized supply chains, providing crucial support in technology, marketing, branding, and training.
OBJECTIVES:
1. Formalization of Enterprises
2. Enhanced Competitiveness
3. Market Expansion and Linkages
4. Capacity Building and Skill Development
5. Financial Support and Access to Credit
6. Infrastructure Development
7. Sustainable Growth
Coverage:
Within the framework of this initiative, a robust support system is poised to directly benefit 2,00,000 micro food processing units through carefully tailored credit-linked subsidies. Concurrently, there is a dedicated commitment to fostering sectoral expansion by providing substantial backing for common infrastructure and institutional architecture. This dual-pronged approach is strategically designed to propel and sustain the dynamic growth of the micro food processing industry.
Benefits:
| Heads | Benefit 1 | Benefit 2 | Benefit 3 |
| Support to Individual Micro Enterprises | Credit-linked capital subsidy @35% of the eligible project cost with a maximum ceiling of ₹ 10,00,000 per unit | Training support, capacity building, Entrepreneurship development | |
| Support for Farmer Producer Organizations (FPOs)/Producer Cooperatives FPOs and Producer Cooperatives: | Grant @35% with credit linkage with maximum Rs. 3 crore to FPO/FPC and Cooperatives. | Training support. | |
| Support for Self-Help Groups (SHGs) | Seed capital @ Rs.40,000/- and maximum Rs. 4,00,000 per SHG for working capital and purchase of small tools would be provided under the scheme. | Credit linked grant @35% with a maximum amount being Rs 10 lakh and training & handholding support to individual SHG member. | Support for capital investment at the SHG level, with credit linked grant @35% with Maximum 3 crore and training support. |
| Support for Common Infrastructure | Common Infrastructure for assaying of agriculture produce, sorting, grading, warehouse, and cold storage at the farm gate | Common processing facility for processing of ODOP produce | Incubation Centre should involve one or more product lines, which could be utilized by smaller units on a hire basis for the processing of their produce |
| Branding and Marketing Support to FPO/SHG/Cooperative for ODOP Retail packaging (50% of total expenditure) | Training relating to marketing to be fully funded under the scheme; | Marketing tie up with national and regional retail chains and state-level institutions | Quality control to ensure product quality meets required standards. |
Eligibility:
The eligibility criteria for the Pradhan Mantri Formalisation of Micro Food Processing Enterprises (PMFME) scheme encompass various aspects, including:
1. Micro Enterprises-
- Definition of Micro Enterprises- Where the investment in Plant and Machinery or Equipment is not more than Rs. 1 crore and Annual Turnover is not more than Rs. 5 crore.
- Applicant ‘s initial investment– 10% of the project cost
- Applicant’s minimum age– above 18 years
- Family benefits- Only one person from one family would be eligible for obtaining financial assistance.
- Infrastructure required- The applicant should have their existing infrastructure/work shed.
- Qualifications Required: the applicant should possess at least VIII standard pass educational qualification.
- The applicant should have an ownership right of the enterprise and an enterprise could be a proprietorship or a partnership firm.
2. Eligibility Criteria for FPO-
- The FPO should have a minimum turnover of Rs 1 Cr.
- Should have experience in dealing with the product for a minimum period of 3 years.
- The cost of the proposed project should not be larger than the present turnover
3. Eligibility Criteria for SHGS For Capital Expenditure-
- The SHG members should have a minimum period of 3 years’ experience in the processing of the ODOP product.
- The SHGs should have sufficient own funds for meeting 10% of the project cost and 20% margin money for working capital or sanction of the same as a grant from the state government.
4. Eligibility Criteria for Seed Capital for SHGS-
1. Only SHG members that are presently engaged in food processing are eligible.
2. The SHG member has to commit to utilize this amount for working capital and purchase of small tools and give a commitment in this regard to the SHG and SHG federation.
3. Before providing the seed capital, SHG Federation should collect the following basic details for each of the members:
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- Details of the product being processed;
- Other activities are undertaken;
- Annual turnover;
- Source of raw materials and marketing of produce
Other Points:
1. The applicant can avail the benefits of other government schemes with PMFME schemes.
2. Training will be provided by State level technical institutions in both online and offline mode.
3. The applicant will get support from a resource person. At the district level, a resource person will assist to avail the benefits of the scheme. The resource person will assist in the preparation of DPR, taking a bank loan, support for obtaining necessary registration and licenses including food standards of FSSAI, Udyam registration, GST, etc.
4. A specific allocation has been made for Scheduled Caste/ Scheduled Tribe and the North-Eastern region.
5. On sanction of the loan, the Central and State government will transfer the fund to the beneficiary mirror account. The beneficiary needs to pay the EMI on time for the next three years and the unit needs to be operational. Post 3 years, if the loan category is standard, the subsidy amount will be credited to the beneficiary account.
6. The assistance of Rs 50,000/- per case would be provided to FPOs/SHGs/ Cooperative for preparation of DPR on all successful sanction of the loan application.
7. Document checklist: https://pmfme.mofpi.gov.in/73b893f9-e468-43cf-908c-521cdcd52c6b
8. ODOP Products link: https://pmfme.mofpi.gov.in/pmfme/assets/PDF/other-downloads/ODOP_LIST_OF_35_STATES_&_UTs.pdf
Process Of Application
- Individual: Registration > Submission > District Resource Persons > District Level Committee > Bank
- Group: (when subsidy is less than 10 Lakh) :- Registration > Submission > District Resource Persons > State Nodal Agency > Bank
- (when subsidy is more than 10 Lakh) :- Registration > Submission > District Resource Persons> State Nodal Agency > Ministry of Food Processing Industries > Bank
Conclusion: Through its emphasis on formalization, the PMFME scheme seeks to integrate these entities into the organized sector, fostering sustainability, competitiveness, and compliance with quality standards. The provision of training, infrastructure development, and access to credit not only augments productivity but also nurtures innovation and skills crucial for the sector’s growth.
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