Official Website of PM FME Kerala

Pradhan Mantri Formalisation of Micro Food Processing Enterprises (PMFME) Scheme

The Ministry of Food Processing Industries (MoFPI), Government of India launched a Centrally Sponsored Scheme - Pradhan Mantri Formalization of Micro Food Processing Enterprises (PMFME) Scheme in June 2020 in partnership with the State & UT Governments to provide financial, technical and business support to new and for the upgradation of existing Micro Food Processing Enterprises in the country.

Credit Linked Subsidy @35% for establishment / upgradation of micro food processing unit with a maximum limit of Rs. 10 lakhs and Common Infrastructure with maximum limit of 3 Cr. would be provided for upgradation or setting up of new unit. The Scheme has a special focus on supporting Groups engaged in Agri-food processing such as Farmer Producer Organizations (FPOs), Self Help Groups (SHGs) and Producers Cooperatives along their entire value chain.

Salient Components of the Scheme

Credit Linked Subsidy

Individuals / Proprietorship / Partnership/ FPOs/ NGOs/ Cooperatives/ SHGs/ Pvt. Ltd. Co. would be provided credit-linked capital subsidy @35% of the eligible project cost - maximum of Rs. 10.0 lakhs per unit for upgradation or setting up of new units.

Common Infrastructure

The Groups - FPOs/ FPCs/ Cooperatives/ SHG and its federation/ Govt. Agencies - established or propose to establish food processing line along with common infrastructure/ Value chain/ incubation centers would be provided credit linked capital subsidy @35% of the eligible project cost (Rs.10 Cr) with a maximum of Rs.3 Crore.

Capacity Building

The Capacity Building component under PMFME Scheme envisages to provide training on Food Processing Entrepreneurship Development Programme to the Pradhan Mantri Formalisation of Micro Food Processing Enterprise beneficiaries.

Marketing & Branding

The Pradhan Mantri Formalisation of Micro Food Processing Enterprise (PMFME) Scheme provides 50% financial grant for Branding and Marketing Support to groups of FPOs/ SHGs/ Cooperatives or a SPV of micro food processing enterprises to promote their existing or proposed brands to market their processed food products under the scheme.

Seed Capital for SHGs

Seed capital @ Rs. 40,000/- per member of SHG for working capital and purchase of small tools maximum upto 4 Lakhs per SHG. Seed Capital given as grant to the SHG Federation by SRLM/SULM through SNA for loan to the members of SHGs.

ODOP

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. It aims to provide the framework for value chain development and alignment of support infrastructure. ODOP approved for 713 districts in 35 States/UTs with 137 unique products.