PM Formalisation of Micro Food Processing Enterprises Scheme (PM FME Scheme)

  • Scheme:
    • Ministry of Food Processing Industries (MoFPI) launched a pan India scheme called ‘Pradhan Mantri Formalisation of Micro Food Processing Enterprises’, in partnership with the State/ UT Governments under Aatmanirbhar Bharat Abhiyan which aims to enhance the competitiveness of existing individual micro-enterprises in the unorganized segment of the food processing industry and promote formalization of the sector and support Farmer Producer Organizations (FPOs), Self Help Groups (SHGs) and Producers Cooperatives along their entire value chain.
    • Under the 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 the growth of the sector.
  • Objectives of the Scheme:
    • Increased access to credit by existing micro food processing entrepreneurs, FPOs, Self Help Groups and Co-operatives.
    • Integration with organized supply chain by strengthening branding & marketing.
    • Support for transition of existing 2,00,000 enterprises into formal framework.
    • Increased access to common services like common processing facility, laboratories, storage, packaging, marketing and incubation services.
    • Strengthening of institutions, research and training in the food processing sector and increased access for the enterprises, to professional and technical support.
    • The scheme is a centrally sponsored scheme that 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.
  • Eligible Entities:
    • Individual entrepreneurs/ Proprietorship Firms/ Partnership Firms/ Farmer Producer Organizations (FPOs)/ NGOs/ Cooperatives/ SHGs/ Pvt. Ltd. Companies, who have established or propose to establish micro food processing unit.
  • Food Processing Enterprises being supported under the scheme would be eligible for benefits under the following schemes:-
    • a. National Rural Livelihood Mission – providing seed capital, training, handholding support and interest subvention to SHGs.
    • b. Start-up Village Entrepreneurship Programme (SVEP) –It is a Centrally Sponsored Scheme, a part of NRLM, provides capital and technical support to rural start-ups through training, handholding and support through Community Enterprises Fund (CEF) as a loan up to Rs.1 lakh for individual entrepreneur and Rs.5 lakh for group entrepreneurs at 12% interest.
    • c. Credit Guarantee Trust Fund for Micro & Small Enterprises (CGTMSE) for collateral free loan as applicable for RRBs.
    • d. PM MUDRA Yojana for loan up to Rs.10 lakh.
    • A Scheme for Promotion of Innovation, Rural Industry and Entrepreneurship (ASPIRE).
    • f. Scheme for Fund for Regeneration of Rural Industry (SFURTI).
    • g. Public Procurement Policy for MSEs.
    • h. Benefits available under various other Schemes of MoFPI such as Backward & Forward Linkages, Agricultural Production Cluster, Cold Chain etc. would be used to provide support to clusters/groups.
    • i. Support from PMKVY and NRLM for skill training for SHGs, if falling within the guidelines would be taken. For shorter duration on site trainings, support would be provided from NRLM and the PMFME scheme, tailor- made for such purposes.
  • Rate of Interest
  • Processing Charge/Upfront Fee
  • For more scheme related details / information, please visit https://pmfme.mofpi.gov.in or nearest SGB Branch.