PMFME Scheme - Full Form, Eligibility and Benefits

The Pradhan Mantri Formalisation of Micro Food Processing Enterprises Scheme (PMFME) Scheme is a central government initiative that supports micro food processing enterprises through credit-linked subsidies, training, branding, and infrastructure support. It aims to formalise the unorganised food processing sector and strengthen the 'One District One Product (ODOP)' approach across India.

PMFME Scheme Overview

PMFME Scheme Details

The PMFME full form is Pradhan Mantri Formalisation of Micro Food Processing Enterprises Scheme. It is a Centrally Sponsored Scheme launched by the Ministry of Food Processing Industries (MoFPI) under the Atmanirbhar Bharat Abhiyan to formalise and strengthen micro food processing enterprises in the unorganised sector.

• The PMFME Scheme provides credit-linked capital subsidies, skill development, common infrastructure, branding and marketing support, and seed capital assistance to eligible beneficiaries. 
• It also promotes the One District One Product (ODOP) approach to strengthen local food products, improve value addition, and expand market access.
• The scheme is implemented jointly by the Central and State Governments. The Centre and States share the implementation cost in a 60:40 ratio, while the sharing pattern is 90:10 for North-Eastern and Himalayan States. 
• Union Territories with a Legislature follow the 60:40 funding pattern, whereas Union Territories without a Legislature receive 100% Central assistance.

Objectives of PMFME Scheme

The PMFME Scheme aims to strengthen the unorganised food processing sector by providing financial and technical support. Its key objectives include:

• Formalising existing micro food processing enterprises.
• Promoting the One District One Product (ODOP) approach.
• Improving access to credit and modern technology.
• Supporting branding, packaging and marketing of food products.
• Building entrepreneurship and technical skills through training.
• Enhancing value addition and market linkages for food processing units.

One District One Product (ODOP) under PMFME Scheme

The PMFME Scheme follows the One District One Product (ODOP) approach to promote food products with significant production potential in each district. The objective is to improve value addition, develop supply chains, strengthen branding, and create better market opportunities for local food products.

• Under the ODOP approach, States identify one food product for each district based on local availability and processing potential. 
• These products may include fruits, vegetables, cereals, fisheries, dairy products, spices, meat, poultry, honey, millet-based products and other region-specific food items. 
• The selected products receive support for infrastructure development, common processing facilities, branding and marketing.

PMFME Scheme List

The scheme primarily addresses the following components of the food processing sector:

1. Common Infrastructure Development

Under this scheme, all the FPOs, Farmer Producer Company (FPC), Cooperatives, SHGs and their subsidiaries, private enterprises and government agencies will receive support for the creation of common infrastructure. This mainly includes support for building incubation centres, cold storage, warehouses, laboratories, etc. 

While determining a project’s eligibility, variables like viability gap, lack of private investment, complication of the value chain and overall benefits of the sector are taken into consideration. A credit-linked capital subsidy is also provided for capital investment. 

Eligible FPOs, Cooperatives, SHGs, Producer Companies, private enterprises and government agencies can establish common facilities such as incubation centres, cold storage, warehouses, laboratories, sorting, grading and packaging units. Eligible projects can receive a 35% credit-linked capital subsidy of up to ₹3 crore, subject to the scheme guidelines.

2. Branding and Marketing 

The PMFME scheme offers branding and marketing support to FPOs, Cooperatives, SHGs or a Special Purpose Vehicle (SPV) of a micro food processing enterprise to market their processed food products. This helps in areas such as developing common packaging, standardisation, branding with provision for quality control and sticking to the food safety protocols. 

The National Agriculture Cooperative Marketing Federation of India (NAFED) and the Tribal Cooperative Marketing Federation of India (TRIFED) are responsible for taking up marketing and branding support. 

The food processing units will receive support of up to Rs. 5 lakhs from the State Nodal Agency to prepare the Detailed Project Report (DPR) for proposals for marketing and branding. 

3. Capacity Building and Research

Training is an important aspect of transforming any unorganised unit into an organised one. Individuals and institutions receiving grants under the PMFME will attend training to improve their skills. 

Capacity building is undertaken through the National Institute of Food Technology Entrepreneurship and Management (NIFTEM-K, Kundli) and the National Institute of Food Technology Entrepreneurship and Management, Thanjavur (NIFTEM-T), along with State-level technical institutions identified by the respective State Governments. These institutions provide entrepreneurship development, technical training and skill upgradation under the PMFME Scheme.

4. Support to Food Processing Units

Under this scheme, unorganised micro food processing units and members engaged in micro food processing are eligible for subsidies for expansion or technology upgradation of food processing units.

5. Seed Capital for SHGs

The PMFME scheme provides seed capital for members of SHG engaged in food processing to purchase small tools and working capital. The seed capital will be provided at the federation level of SHGs, which will be extended to the members as a loan through SHG.

PMFME Scheme Subsidy

Under the PMFME Scheme, eligible beneficiaries can receive the following financial assistance:

• Individual Units: Credit-linked capital subsidy of 35% of the eligible project cost, up to ₹10 lakh per unit.
• Common Infrastructure Projects: Credit-linked capital subsidy of 35% of the eligible project cost, up to ₹3 crore for eligible group entities such as FPOs, Cooperatives and SHG Federations.
• Branding and Marketing: Financial assistance of up to 50% of eligible project costs.
• Seed Capital for SHGs: ₹40,000 per SHG member, subject to a maximum of ₹4 lakh per SHG, for working capital and small tools.

PMFME Scheme Eligibility Criteria 

For different types of assistance, different eligibility criteria need to be met. These are as follows:

1. Common Infrastructure Development

• All FPOs, cooperatives and SHGs should be engaged in the processing of ODOP produce for at least three years.
• FPOs and cooperatives should have a minimum turnover of Rs.1 crore, and the project cost should not be higher than the present turnover.
• SHGs, cooperatives and FPOs should have internal resources to meet 10% of the project cost and margin money for working capital. 

2. Branding and Marketing 

• The branding and marketing proposal should relate to ODOP. 
• The minimum turnover of the product should be Rs.5 crore.
• The final product should be sold to the consumer in a retail pack.
• The products and producers should be scalable to larger levels.
• The entity should have management and entrepreneurship capabilities for promotion.

3. Capacity Building and Research

• Individual units and groups that receive support for capital investment. 
• Other existing units and groups in the districts processing ODOP products. 
• Groups receiving support for marketing and branding.

4. Support to Food Processing Units

• Individuals or partnership firms with ownership rights of the enterprise.
• Existing micro food processing units in operations.
• Existing micro food processing units verified by the resource person. 
• Applicant should be above 18 years old and possess at least VIII standard pass educational qualification. 
• Only one person from one family is eligible for financial assistance. The family would include self, spouse and children.

5. Seed Capital for SHGs

• Only SHG members who are presently engaged in food processing.
• SHG members have to commit to utilising the amount for working capital and purchase of small tools and make a commitment in this regard to the SHG federation and SHG. 

PMFME Application Form

Applications under the PMFME Scheme can be submitted through the official PMFME portal. Different application formats are available for various beneficiary categories such as Farmer Producer Companies (FPCs), Cooperative Societies, Common Infrastructure projects and Self-Help Groups (SHGs).

PMFME Application Form Download

Official application forms for different beneficiary categories can be downloaded from the PMFME portal:

1. Download PMFME Application Form for Farmer Producer Companies
2. Download PMFME Application Form for Cooperative Societies
3. Download PMFME Application Form for Common Infrastructure
4. Download PMFME Application Form for Self-Help Groups

PMFME Online Application

Eligible applicants can apply online for the PMFME Scheme through the official PMFME portal by following these steps:

Step 1: Visit the official PMFME website.

Step 2: Click 'Login' and select 'Applicant Registration'.

Step 3: Complete the registration by entering the required details and click 'Register'.

Step 4: Log in using the registered User ID and password.

Step 5: Click 'Apply Online' from the dashboard.

Step 6: Fill in the application form, upload the required documents and submit the application.

PMFME Scheme Benefits

The PMFME Scheme offers the following benefits to eligible micro food processing enterprises:

• Provides 35% credit-linked capital subsidy to eligible individual units for technology upgradation and expansion.
• Supports common infrastructure projects such as cold storage, warehouses, incubation centres and processing facilities for FPOs, SHGs and cooperatives.
• Offers branding and marketing assistance to improve product quality, packaging and market access.
• Builds entrepreneurial and technical skills through training and capacity-building programmes.
• Promotes the One District One Product (ODOP) approach to strengthen local food products and value chains.
• Encourages the formalisation of micro food processing enterprises by supporting regulatory compliance and access to institutional finance.

The PMFME Scheme supports the growth of micro food processing enterprises through financial assistance, skill development, infrastructure, and branding support. By promoting formalisation and the ODOP approach, the scheme strengthens India's food processing sector and improves opportunities for small entrepreneurs.