PMFME Scheme Extension: Boost for Indian Micro Food Enterprises
By Business Desk
India’s Food Processing Ministry proposes a 5-year extension for the PMFME scheme, enhancing credit-linked subsidies for micro food businesses. Learn about its impact.
The Ministry of Food Processing Industries has proposed a five-year extension for the Pradhan Mantri Formalisation of Micro Food Processing Enterprises (PMFME) scheme. This initiative aims to enhance credit-linked subsidies and financing for micro food processing enterprises across the nation.
Understanding the PMFME Scheme
The PMFME scheme, initially launched in FY21 with a significant outlay, provides crucial financial support. It offers a 35% credit-linked subsidy to eligible projects.
- Initial Outlay: Rs 10,000 crore (for five years)
- Subsidy Rate: 35% credit-linked
- Project Ceiling: Up to Rs 3 million
- Promoter Contribution: 10% of project costs required
The scheme has already received an extension until September 30, 2026, demonstrating its ongoing importance to the sector.
Scheme’s Impact and Reach
According to Devesh Deval, Joint Secretary, the ministry has successfully supported a substantial number of micro food processing enterprises. This support has led to significant financial disbursements.
- Enterprises Supported: 2.06 lakh
- Subsidies Disbursed: Rs 6,000 crore
- Total Project Cost Facilitated: Rs 20,400 crore
- Women Beneficiaries: Over 40% of participants
The scheme’s reach extends across various states, with Bihar leading in beneficiary numbers. Other states showing strong participation include Maharashtra, Uttar Pradesh, Tamil Nadu, and Madhya Pradesh.
- Leading Beneficiary States:
- Bihar
- Maharashtra
- Uttar Pradesh
- Tamil Nadu
- Madhya Pradesh
Primary activities receiving support under PMFME focus on essential agricultural products. These include the processing of cereals, oil and oilseeds, and fruits and vegetables.
- Supported Processing Activities:
- Cereals
- Oil and oilseeds
- Fruits and vegetables
Collaborative Implementation
The PMFME scheme is implemented collaboratively with state governments and various entities within the unorganised food processing sector. This includes individual micro-enterprises, farmer producer organisations (FPOs), self-help groups, and cooperatives.
The proposed five-year extension underscores the government’s continued commitment to formalising and strengthening India’s micro food processing sector.