Food ProcessingSectors

PM Formalisation of Micro Food Processing Enterprises (PMFME) Scheme Discussed AT Lok Sabha

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As part of Atmanirbhar Bharat Abhiyan – Vocal for Local Initiative in food processing sector, Ministry of Food Processing Industries (MoFPI) is implementing a centrally sponsored “PM Formalisation of Micro food processing Enterprises (PMFME) Scheme” for providing financial, technical and business support for setting up / upgradation of micro food processing enterprises in the country. The scheme is operational for a period of five years from 2020-21 to 2024-25 with an outlay of Rs. 10,000 Crore. Scheme primarily 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. It provides the framework for value chain development and alignment of support infrastructure.

As per the Annual Survey of Industries, 2015-16 and 73rd Round Survey of National Sample Survey Organisation (NSSO), there are about 25 lakh unregistered/ unincorporated food processing enterprises in the country. The details of State-wise number of unregistered/unincorporated enterprises in the country are at Annexure-I.

The PMFME 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 scheme aims to enhance the competitiveness of new and existing individual micro-enterprises in the unorganized segment of the food processing industry and promote formalization of the sector. The details of assistance available to Micro Food Processing Enterprises under PMFME Scheme:

(i). Support to Individual / Group Category Micro Enterprises: Credit-linked capital subsidy @35% of the eligible project cost, maximum ceiling Rs.10 lakh per unit;

(ii). Support to SHGs for seed capital: Seed capital @ Rs. 40,000/- per member of SHG engaged in food processing for working capital and purchase of small tools subject to maximum of Rs. 4 lakh per SHG Federation.

(iii). Support for Common Infrastructure: Credit linked capital subsidy @35% subject to maximum of Rs. 3 crore to support FPOs, SHGs, Cooperatives and any Government agency for setting up of common infrastructure. The common infrastructure will also be available for other units and public to utilize on hiring basis for substantial part of the capacity.

(iv). Branding and Marketing Support: Grant upto 50% for Branding and Marketing to groups of FPOs/ SHGs/ Cooperatives or an SPV of micro food processing enterprises.

(v). Capacity Building: The scheme envisages training for Entrepreneurship Development Skilling (EDP+): program modified to meet the requirement of food processing industry and product specific skilling.

Capacity building and training is a critical component of the scheme in technical upgradation and formalization of micro food processing enterprises. The focus areas for capacity building are entrepreneurship development, compliance of Food Safety and Standards Authority of India (FSSAI) standards and general hygiene and other statutory compliances. District Resource Persons (DRPs) have been entrusted to provide handholding support to micro food processing enterprises for the compliance of FSSAI and other statutory requirements.



State wise details of State-wise number of unregistered/unincorporated enterprises in the country

Sl. No.State/UTNumber of Unincorporated

Enterprise’s manufacturing Food and Beverages

1Andaman & Nicobar Islands774
2Andhra Pradesh1,54,330
3Arunachal Pradesh145
8D & N Haveli and Daman & Diu758
13Himachal Pradesh21,885
14Jammu & Kashmir28,089
20Madhya Pradesh1,02,808
31Tamil Nadu1,78,527
34Uttar Pradesh3,50,883
36West Bengal3,22,590
Source: Annual Survey of Industries, 2016-17 and NSSO 73rd Round (July 2015-June 2016)

This information was given by Minister of State for M/o Food Processing Industries, Shri Prahlad Singh Patel in a written reply in Lok Sabha.

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