PM FME Scheme
The Ministry of Food Processing Industries (MoFPI), Government of India implemented a centrally sponsored Pradhan Mantri Formalisation of Micro food processing Enterprises (PMFME) Scheme for providing financial, technical and business support for upgradation of micro food processing enterprises in the country. Credit Linked Subsidy @35% for establishment of micro food processing unit with a maximum limit of Rs. 10 lakh and common infrastructure with maximum limit of Rs. 3 Crores is provided for upgradation or setting up of new unit.
The scheme to be implemented over a period five years from 2020-21 to 2024-25 with a total outlay of Rs. 10,000 crores. 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.
PM FME Scheme is designed to address the challenges faced by the micro enterprises and to tap the potential of groups and cooperatives in supporting the upgradation and formalization of these enterprises.
The PMFME scheme support in terms of:
- Seed capital @ Rs. 40,000/- per SHG member for working capital and purchase of small tools.
- Food processing entrepreneurs through credit-linked capital subsidy@35% of the eligible project cost with a maximum ceiling of Rs.10 lakh per unit.
- Credit linked grant of 35% for capital investment to FPOs/ SHGs/ Producer Cooperatives.
- Support for Marketing & Branding to micro units.
Outlay
PMFME Scheme envisages an outlay of Rs. 10,000 crore over a period of five years from 2020-21 to 2024-25. The expenditure under the scheme would to be shared in 60:40 ratio between Central and State Governments, in 90:10 ratio with North Eastern and Himalayan States, 60:40 ratio with UTs with legislature and 100% by the Center for other UTs.
Coverage
Under the PMFME Scheme, 2,00,000 micro food processing units will be directly assisted with credit linked subsidy. Adequate supportive common infrastructure and institutional architecture will be supported to accelerate growth of the sector.
One District One Product (ODOP)
The Scheme adopts 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. ODOP for the scheme provides the framework for value chain development and alignment of support infrastructure. There can be more than one cluster of ODOP product in one district.
The Ministry of Food Processing Industries, Government of India has approved the following products from each District as ODOP:
| No. | District | ODOP |
| 1 | Thiruvananthapuram | Tapioca based Products |
| 2 | Kollam | Tapioca and Tuber Crop based Products |
| 3 | Pathanamthitta | Jackfruit based Products |
| 4 | Alappuzha | Rice Products |
| 5 | Kottayam | Coconut based Products |
| 6 | Idukki | Spices |
| 7 | Ernakulam | Pineapple based Products |
| 8 | Thrissur | Rice based Products |
| 9 | Palakkad | Banana based Products |
| 10 | Malappuram | Coconut based Products |
| 11 | Kozhikode | Coconut based Products |
| 12 | Wayanad | Milk based Products |
| 13 | Kannur | Coconut based Products |
| 14 | Kasargod | Jackfruit based Products |
As per the Revised Guidelines, currently, proposal for both ODOP or non-ODOP are eligible for assistance under the PMFME Scheme, however ODOP proposals would be preferred.
