The unorganised food processing sector in India faced a myriad of problems. This sector remains weak due to challenges like lack of productivity and innovation due to limited skills, lack of branding and marketing skills, inability to integrate with supply chains, and capital deficiency. While the food processing sector comprises over 25 Lakh units, these challenges have stunted its growth and development. To tackle these issues in a systematic way, the Indian government launched the PMFME Scheme. This article discusses the PMFME Scheme in detail, highlighting its provisions, eligibility requirements, benefits, and application process.
What is PMFME Scheme?
The full-form of the PMFME Scheme is Pradhan Mantri Formalisation of Micro Food Processing Enterprises Scheme. It is a government-backed scheme launched by the Ministry of Food Processing Industries to support the ‘Vocal for Local’ campaign. This Scheme was introduced under the Atmanirbhar Bharat Abhiyaan in 2020 for a period of five years (2020-2021 to 2024-2025) with a total outlay of Rs. 10,000 Crores. According to the PMFME Scheme details, this expenditure is to be shared in a 60:40 ratio between the central and state governments. For North Eastern and Himalayan states the ratio is capped at 90:10.
The PMFME Scheme aims to offer financial, technical, and business assistance to various micro food processing enterprises to help them upgrade their units. It also aims to increase the number of micro enterprises operating the sector and upgrade the unorganised sector into a more formalised and organised framework with special focus on producer cooperatives, Farmer Producer Organisations (FPO), and self-help groups (SHGs).
PMFME Scheme in India – Key Features
The PMFME Scheme is one of the major initiatives launched by the Government of India to strengthen the unorganised food processing sector and improve the financial and operational capabilities of micro food processing enterprises. Implemented by the Ministry of Food Processing Industries (MoFPI), the scheme focuses on formalisation, credit access, branding, infrastructure development, and skill enhancement for small food businesses across the country.
Some of the key features of the PMFME Scheme include:
- The scheme was launched under the Atmanirbhar Bharat Abhiyaan to support the “Vocal for Local” initiative.
- It aims to formalise micro food processing enterprises operating in the unorganised sector.
- The PMFME Scheme follows the One District One Product (ODOP) approach to promote district-specific food products.
- It provides financial assistance through credit-linked subsidies for expansion and technology upgradation.
- The scheme supports individuals, Self-Help Groups (SHGs), Farmer Producer Organisations (FPOs), and cooperatives engaged in food processing activities.
- Financial support is available for branding, marketing, packaging, and product standardisation.
- The scheme also focuses on capacity building through technical training, entrepreneurship development, and skill enhancement programs.
- PMFME encourages integration with organised supply chains to improve market access for small food businesses.
- The central and state governments jointly implement the scheme with shared financial participation.
Through these features, the PMFME Scheme aims to improve productivity, increase employment opportunities, and strengthen India’s food processing ecosystem.
What is ODOP (One District One Product) Under PMFME Scheme?
The PMFME Scheme works on the principle of One District One Product or ODOP. Under the ODOP approach, the state identifies the food products in the district. The selected food product can be perishable agricultural produce, a food product that’s widely produced in the district, or a cereal-based product. Common ODOP examples include potato, pickles, mango, animal feed, meat, tomato, and fisheries. Herbal items like turmeric and amla as well as honey and minor forest products in tribal areas also qualify for support under the PMFME Scheme. This ODOP approach allows the Scheme to tap into the benefits of scale in terms of procuring inputs, marketing products, and availing common services. The goal is to offer a framework for value chain development and support infrastructure alignment.
Key Components of PMFME Scheme
The PMFME Scheme has been designed with multiple support components to address the major challenges faced by micro food processing enterprises in India. These components focus on financial assistance, infrastructure development, skill training, branding support, and formalisation of small businesses.
Common Infrastructure Development
Under the PMFME Scheme, support is provided for creating common infrastructure facilities that help food processing units improve production and storage capabilities. This includes assistance for:
- Cold storage facilities
- Warehouses
- Food testing laboratories
- Incubation centres
- Packaging units
- Processing facilities
The objective is to reduce operational costs and improve the efficiency of food processing businesses.
Branding and Marketing Support
The PMFME Scheme provides financial assistance for branding and marketing activities to help small food businesses compete in larger markets. Support is available for:
- Product branding
- Packaging design
- Marketing campaigns
- Quality standardisation
- Barcoding and labelling
This helps micro enterprises improve product visibility and build stronger consumer trust.
Capacity Building and Training
Skill development is an important component of the PMFME Scheme. The government provides training and technical support to entrepreneurs for improving operational efficiency and business management. Training programs focus on:
- Food safety standards
- Processing techniques
- Packaging methods
- Business management
- Entrepreneurship development
These initiatives help enterprises adopt modern practices and improve productivity.
Seed Capital Support for SHGs
Members of Self-Help Groups (SHGs) engaged in food processing activities can receive seed capital assistance under the PMFME Scheme. This financial support helps members purchase small tools, machinery, and working capital required for business operations.
Support for Food Processing Units
Existing micro food processing enterprises can avail financial assistance for expansion, modernisation, and technology upgradation. The PMFME Scheme encourages small businesses to adopt better machinery and improve the quality of food processing facilities.
PMFME Scheme Subsidy Details
The PMFME Scheme’s subsidy benefits are listed below:
- The scheme offers 35% credit-linked capital subsidy on the eligible project cost (maximum ceiling of Rs. 10 Lakhs/unit) to eligible micro food processing units.
- The PMFME Scheme offers an initial seed capital of Rs. 40,000 to SGHs to purchase small tools and meet working capital requirements.
- Financial support for branding and marketing by covering 50% of the overall costs.
PMFME Scheme Benefits for MSMEs
The PMFME Scheme offers the following benefits to formalise the micro food processing industry:
- Assistance in capacity building: This Scheme also focuses on helping entrepreneurs to build the capacity to scale operations through skill training, technical knowledge transfers, and various developmental programmes.
- Establish common infrastructure: The PMFME Scheme helps applicants create a food processing line with the value chain and common infrastructure components like incubation centres.
- Marketing and branding support: The PMFME Scheme offers financial assistance for branding and marketing purposes to promote the processed food product and facilitate integration with organised supply chains.
- Improve Food Processing Facilities: Through the PMFME Scheme, over 2 Lakh micro food processing units can access financial aid to improve their food processing facilities with better equipment and upgrades.
PMFME Scheme Eligibility Criteria
All existing and new micro food processing enterprises, farmer producer organisations, self-help groups, and producer cooperatives are eligible to apply for the PMFME Scheme. However, the eligibility criteria for the PMFME Scheme varies depending on the type of assistance required. Let’s understand the PMFME Scheme eligibility requirements for each category in detail:
Eligibility Criteria for Common Infrastructure Development
- All cooperatives, SGHs, and FPOs should be engaged in the processing of the selected ODOP produce for at least 3 years.
- These entities must also have a minimum turnover of Rs. 1 Crore.
- The cost of the proposed project should not be more than the present turnover.
- The covered entities must have internal resources to meet at least 10% of the project cost and funds for working capital.
Eligibility Criteria for Branding and Marketing
- The branding and marketing proposal submitted should be related to the ODOP product.
- The minimum turnover of the product should be at least Rs. 5 Crores.
- The final product should be sold in a retail pack to the customer.
- Both products and producers should be scalable to larger levels.
- The proposal should establish the management and entrepreneurship capabilities of the entity.
Eligibility Criteria for Support for Food Processing Units
- Partnership firms or individuals with ownership rights in the enterprise can apply for the PMFME Scheme.
- The applicant must be above 18 years of age and possess qualification for at least the eighth standard.
- Existing micro food processing units in operations qualify for the PMFME support.
- The unit must be verified by the resource person.
- Only one person per family can apply for financial assistance under the PMFME Scheme.
Eligibility Criteria for Seed Capital for Self-Help Groups
- Seed capital is available to only those SGH members who are currently engaged in food processing.
- The eligible members have to make a commitment to the SGH Federation about using the funds as working capital and for the purchase of small tools.
- The SGH Federation also has to take down details about the annual turnover,sources of materials, and marketing of produce.
Documents Required for PMFME Scheme Application
Applicants applying under the PMFME Scheme must submit certain documents and business details during the registration and application process. Keeping all documents ready in advance helps ensure faster processing and verification.
The commonly required documents for PMFME Scheme application include:
- Aadhaar Card of the applicant
- PAN Card
- Address proof of the business unit
- Bank account details and cancelled cheque
- Passport-size photographs
- GST registration certificate (if applicable)
- Business registration documents
- Project report or business proposal
- Income proof or financial statements
- Details of machinery and equipment
- Turnover details of the enterprise
- SHG, FPO, or cooperative registration certificate (if applicable)
Applicants may also be required to provide additional documents depending on the type of assistance or subsidy being applied for under the PMFME Scheme.
It is important to ensure that all submitted documents are accurate and updated to avoid delays in approval or subsidy disbursement.
How to Apply for PMFME Scheme Online? (Step-by-Step Process)
If you fit the eligibility criteria for the PMFME Scheme, you can apply online. Here’s a step-by-step guide on how to apply for the PMFME Scheme online:
- Visit the official PMFME website at www.pmfme.mofpi.gov.in/
- Click on the Login option listed on the upper right side of the page.
- From the drop-down menu, select ‘Applicant Registration (New User)’.
- Input the necessary details like your name, mobile number, type of beneficiary, address, state, and district on the application form and click ‘Register’.
- Next, log into the PMFME website using the ‘Applicant Login’ option.
- Enter your credentials – user ID and password and then click submit.
- Choose the ‘Apply Online’ option from the dashboard.
- Fill up the appropriate PMFME application form with the relevant details sought and click the ‘Submit’ button.
PMFME Application Form Details & Download
The PMFME Scheme provides different application forms based on the category of applicant and the type of assistance required. Applicants can apply online through the official PMFME portal or use the prescribed forms for specific categories such as Farmer Producer Organisations (FPOs), Self-Help Groups (SHGs), cooperatives, and common infrastructure projects.
The PMFME application form generally requires details such as:
- Applicant name and contact details
- Type of enterprise or organisation
- Business activity and food product category
- ODOP product details
- Project cost and financial assistance required
- Bank account information
- Turnover and investment details
- Existing infrastructure and machinery details
Before submitting the PMFME application form, applicants should carefully review all details and ensure that supporting documents are attached correctly.
The official PMFME portal also allows applicants to:
- Register online
- Track application status
- Upload documents
- Access scheme guidelines
- Download application forms and related resources
Using the correct PMFME application form and providing accurate information improves the chances of faster approval and subsidy processing under the scheme.
Frequently Asked Questions
- Who is eligible for PMFME Scheme?
Micro food processing enterprises, Self-Help Groups (SHGs), Farmer Producer Organisations (FPOs), and cooperatives engaged in food processing activities are eligible for the PMFME Scheme. Both existing and new businesses can apply based on scheme guidelines.
- What is PMFME full form?
PMFME stands for Pradhan Mantri Formalisation of Micro Food Processing Enterprises Scheme. It was launched by the Ministry of Food Processing Industries to support small food businesses in India.
- How much subsidy is available under the PMFME Scheme?
The PMFME Scheme offers a 35% credit-linked capital subsidy on eligible project costs up to ₹10 lakh per unit. SHG members can also receive seed capital support of ₹40,000 per member.
- Is PMFME Scheme available for new businesses?
Yes, the PMFME Scheme is available for both new and existing micro food processing enterprises. Applicants must meet the eligibility criteria and submit the required documents.
- Can SHGs apply for the PMFME Scheme?
Yes, Self-Help Groups involved in food processing activities can apply under the PMFME Scheme. Eligible SHGs can receive seed capital assistance, training, and branding support.
- How to apply for the PMFME Scheme online?
Applicants can apply online through the official PMFME portal by registering, filling out the application form, uploading documents, and submitting the application online.
- What documents are required for PMFME application?
Applicants generally need Aadhaar Card, PAN Card, bank details, address proof, business registration documents, project report, and turnover details for PMFME application.
- What is ODOP in the PMFME Scheme?
ODOP stands for One District One Product. Under the PMFME Scheme, each district promotes a specific food product to improve branding, processing, marketing, and business growth.
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