The Indian food processing industry caters to a wide variety of food products. There are around 25 lakh food processing units in the unorganised food processing sector in our country, contributing 74% of employment in the food processing sector. These unorganised sectors have been facing a large number of challenges for a long time. 

To address this issue, the Government of India, through the Ministry of Food Processing Industry (MoFPI), launched the PMFME scheme. Keep reading to learn the PMFME full form, benefits, eligibility and other details you need to know about this scheme.

PMFME Scheme Details

The PMFME full form is the Pradhan Mantri Formalisation of Micro Food Processing Enterprises scheme. It is a one-stop solution to formalise the Indian food sector. The Ministry of Food Processing implements this scheme with the aim of supporting the ‘Vocal for Local’ campaign. 

The PMFME scheme was launched under Atmanirbhar Bharat Abhiyaan in 2020 for 5 years from 2020-21 to 2024-25. It aims to increase the existing micro-enterprises operating in the food processing industries in the unorganised segment and formalise them with a special focus on supporting Farmer Producer Organizations (FPOs), producers cooperatives and Self-Help Groups (SHGs) engaged in the agri-food processing sector.

It is a centrally sponsored scheme with an outlay of Rs.10,000 crores for 5 years. The expenditure will be shared by the central government and the state governments in a ratio of 60:40. In  North-Eastern and Himalayan states, the ratio of share by the central government and state government is 90:10. 

One District One Product (ODOP) Under PMFME Scheme

The PMFME scheme has adopted the One District One Product (ODOP) approach to increase the scale of procuring inputs, common services and marketing products. It aims to provide the framework for aligning support infrastructure and value chain development. 

Under the ODOP, the states will identify and promote the food products in the district. The food product chosen can be a perishable agricultural crop, cereal-based or one food product largely produced in the district. 

Tomato, litchi, potato, millet-based products, fishery, mango, animal feed, poultry, meat, etc., are some of the products included in ODOP. Traditional Indian herbal items like turmeric, amla, honey and minor forest products in tribal regions will also receive support from this scheme. Good infrastructure facilities, branding and marketing will be offered under the ODOP approach. 

PMFME Scheme List

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

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. 

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. 

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. 

Two national-level organisations, namely the National Institute for Food Technology Entrepreneurship and Management and the Indian Institute of Food Processing Technology, look into training and capacity building. These two organisations, along with state-level technology institutes chosen by the state government, conduct all necessary training.

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.

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, the government will provide the following subsidies: 

• A credit-linked capital subsidy of 35% of the eligible project cost (Rs.10 crore) up to a maximum of Rs.3 crore for common infrastructure and capital expenditure of SHGs, FPOs and cooperatives.
• Support for branding and marketing of 50% of overall expenses.
• A seed capital of Rs.40,000 per member of the SHG up to a maximum of Rs.4 lakhs per SHG for the purchase of small tools and working capital. 
• A credit-linked capital subsidy of 35% of the eligible project costs up to a maximum of Rs.10 lakhs per unit to individuals, proprietorships, partnerships, FPOs, NGOs, cooperatives, SHGs or private limited companies to upgrade or set up new units.

PMFME Scheme Benefits

• It covers around two lakh micro food processing units with credit-linked subsidies.
• Through this scheme, individual units will receive financial assistance to improve the food processing facility.
• This scheme works towards building the capacity of entrepreneurs through skill training, technical knowledge transfer and support service.
• The scheme aims to work towards increasing the integration with organised supply chains with the help of marketing.
• It supports existing enterprises in transferring into formal organisations and getting registration under the regulatory framework with compliance.

PMFME Scheme Eligibility Criteria 

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

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. 

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.

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.

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.

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

You can apply for the PMFME scheme both online as well as offline. There are four different types of application forms to opt for the benefits of the scheme. In the case of offline applications, there are separate forms for the FPC, cooperative societies, common infrastructure and SHGs. 

Here is the form for Farmer Producer Companies:

Take a look at the form applicable to Cooperative Societies:

Let us check out the form template for Common Infrastructure:

Please take a look at the application form for Self-Help Groups:

PMFME Online Application

In case you wish to apply for the PMFME scheme online, follow the below process:

• Visit the official PMFME website.
• Click on ‘Login’ and on ‘Applicant Registration’.
• Enter the required details on the application form and click ‘Register’.
• Log in to the PMFME website by clicking on ‘Login’ and ‘Applicant Login’ option.
• Enter the User ID and password and click ‘Submit’.
• Choose the ‘Apply Online’ option from the dashboard.
• Fill out the applicable form with all the details and click ‘Submit’.

The PMFME scheme is beneficial for the unorganised food processing sector. The unorganised food processing sectors comprise 25 lakh units. With the help of this scheme, this sector will be able to face the challenges of lacking modern technology and equipment, institutional credit, training and much more, and evolve as a successful unit helping to improve the overall condition of the country.