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Business & Entrepreneurship

Pradhan Mantri Formalisation Of Micro Food Processing Enterprises

Launched on 29th June 2020, PMFMPE is a Centrally Sponsored Scheme by the MoFPI, 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.

Authority

Central

Region

None

Status

Verified 2026

Updated

March 2026

What you get

Who can apply

Farmer Producer Organization (FPO); Self-Help Groups; Co-operatives; Existing Micro Food Processing Entrepreneurs; New Units, whether for individuals or groups would only be supported for One District One Product (ODOP); Existing micro food processing units in operations.; Existing units should be those identified in the SLUP for ODOP products or by the Resource Person on physical verification. In the case of units using electrical power, the electricity bill would support it being in operation. For other units, existing operations, inventory, machines, and sales would form the basis.; The enterprise should be unincorporated and should employ less than 10 workers.; The enterprise should preferably be involved in the product identified in the ODOP of the district. Other micro-enterprises could also be considered.; The applicant should have ownership rights of the enterprise.; Ownership status of the enterprise could be proprietary / partnership firm.; The applicant should be above 18 years of age and should possess at least VIII standard pass educational qualification.; Only one person from one family would be eligible for obtaining financial assistance. The “family” for this purpose would include self, spouse, and children.; Willingness to formalize and contribute10% of project cost and obtain Bank loan.; Cost of the land should not be included in the Project cost. The cost of the ready-built, as well as the long lease or rental workshed, could be included in the project cost. The lease rental of the workshed to be included in the project cost should be for a maximum period of 3 years only.; It should preferably be engaged in the processing of ODOP produce.; It should have a minimum turnover of Rs.1 crore.; The cost of the project proposed should not be larger than the present turnover.; The members should have sufficient knowledge and experience in dealing with the product for a minimum period of 3 years.; The cooperative/FPO should have sufficient internal resources or sanction from the State Government to meet 10% of the project cost and margin money for working capital.; Only SHG members that are presently engaged in food processing would be eligible.; The SHG member has to commit to utilizing this amount for working capital and purchase of small tools and give a commitment in this regard to the SHG and SHG federation.; Before providing the seed capital, SHG Federation should collect the following basic details for each of the members:; 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.; The SHG members should have a minimum period of 3 years of experience in the processing of the ODOP product.; The proposal should relate to ODOP.; Minimum turnover of product to be eligible for assistance should be Rs 5 crore.; The final product should be the one to be sold to the consumer in the retail pack.; Applicant should be an FPO/SHG/cooperative/ regional - State levels SPV to bring a large number of producers together.; Product and producers should be scalable to larger levels.; Management and entrepreneurship capability of promoting entity should be established in the proposal.; A college/institute under State Agriculture University or any other University.; A State-owned food processing technology research Institute.; An institute under CSIR or any Government of India institute focusing on food processing.; If it is a college, it should have undergraduate/postgraduate courses in food processing technology and the necessary faculty.; The Institute should have a full-fledged laboratory with necessary testing and processing equipment.; The Institute should have faculty undertaking research work and product development and machinery for food processing, especially for MSMEs.; The proposal should be recommended by the State Government.; The Institute should be willing to appoint a Nodal Officer and a dedicated team consisting of at least two faculty members focusing exclusively on the Scheme.; The Institute should have sufficient built-up space to undertake training for beneficiaries under the Scheme.; The institute preferably should have pilot plants for processing a few products under ODOP for the State.

Required Paperwork

  • Aadhaar Card
  • PAN Card
  • Income Certificate
  • Residence Proof (Domicile)

Common Questions

What Is PM FME Scheme?

PM FME stands for "Prime Minister Micro Food Processing Enterprises". PMFME is an all-India Centrally Sponsored Scheme with an outlay of Rs. 10,000 crores for coverage of 2,00,000 enterprises over 5 years from 2020-21 to 2024-25 being implemented by MOFPI.

What Are Micro Enterprises?

A Micro Enterprise is an enterprise where the investment in Plant and Machinery or Equipment is not more than Rs. 1 crore and the Annual Turnover is not more than Rs. 5 crore.

Is There Any Limit Of Credit Subsidy/Grant?

Yes, it would be 35% of the project cost with a maximum ceiling of Rs 10 lacs for an individual beneficiary. For SHG members involved in food processing, seed capital of Rs 40,000/- per member will be distributed as working capital and for the purchase of small tools.

Is There Any Initial Investment Required By The Person For The Scheme?

Yes, the applicant should be willing to contribute 10% of the project cost.

What Is The Process Of Crediting Subsidies?

At the national level, a Nodal bank would be appointed for the disbursement of subsidies to the banks and liaison with the banks

Is There Any Provision Of Special Benefits For SC/ST Applying In The Scheme?

Yes, the specific allocation has been made for Scheduled Caste/ Scheduled Tribe and the North-Eastern region.

When The Subsidy Amount Will Be Credited To My Account?

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

I Have Applied For The Benefits Of The Scheme. Can My Son/Daughter/Sprouse Also Apply For The Same As They Are Dealing In ODOP Processing?

No, only one person from one family would be eligible for obtaining financial assistance. The "family" for this purpose would include self, spouse and children.

Can I Avail Of Other Government Schemes With The PMFME Scheme?

Yes, you can avail of other Government schemes with PMFME Scheme

How Branding And Marketing Support Will Be Provided Under This Scheme?

Marketing and branding support would be provided to groups of FPOs/SHGs/Cooperatives under the Scheme following the ODOP approach in the following ways: | Training relating to marketing to be fully funded under the scheme | Developing a common brand and packaging including standardization to participate | in common packaging | Marketing tie up with national and regional retail chains and state level institutions | Quality control to ensure product quality meets required standards

Is There Any Provision Of Financial Assistance For The Preparation Of DPR?

Yes, the assistance of Rs 50,000/- per case would be provided to FPOs/SHGs/ Cooperative for preparation of DPR on all successful sanctions of the loan application.

What Is The Duration Of The Scheme?

The scheme is for a period of 5 years from 2020-21 to 2024-25.

Is Any Processing Fees Or Application Fees Will Be Charged?

No, it's a centrally sponsored scheme, you need not to pay any fees for filling application or any handholding

Is There Any Age Limit To Apply?

Yes, the applicant should be above 18 years of age

Is There Any Qualification Required To Avail Of The Benefits Of The Scheme?

Yes, the applicant should possess at least VIII standard pass educational qualification.

Are There Any Other Eligibility Criteria To Avail Of The Benefits Of The Scheme?

Yes, the applicant should have an ownership right of the enterprise and an enterprise could be a proprietorship or a partnership firm.

If My Application Is Rejected, Can I Resubmit The Application?

Yes, if the application is rejected by one bank, you can resubmit the application with another bank.

More Than 10 Workers Are Employed In My Enterprise. Can I Apply For This Scheme?

No, according to the eligibility criteria, the enterprise should be unincorporated and should employ less than 10 workers for availing the benefits of the scheme.