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.

As on March 31, 2024 Kerala ranks Third in the State wise ranking of number of loans sanctioned under Credit Linked Subsidy Category as 3445 loans have been sanctioned under Individual & Group Category for availing 35% Credit linked Grant. Rs.23.58 Crores has been released as Subsidy to 906 beneficiaries. A Seed Capital Assistance of Rs.21.49 crores have been released to 6802 members of Kudumbashree Mission, both SRLM and SULM in all the districts. Kerala ranked First in providing Seed Capital Assistance to SULM Members under the Scheme in FY 2022-23.