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Ministry of Food Processing Industries

PM Formalisation Of Micro Food Processing Enterprises Scheme

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Frequently Asked Questions
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 subsidies. Adequate supportive common infrastructure and institutional architecture will be supported to accelerate the growth of the sector.

The objectives of the scheme are to build the capability of microenterprises to enable
  1. Increased access to credit by existing micro food processing entrepreneurs, FPOs , Self Help Groups and Co-operatives;
  2. Integration with an organized supply chain by strengthening branding & marketing;
  3. Support for the transition of existing 5000 enterprises into the formal framework;
  4. Increased access to common services like common processing facilities, laboratories, storage, packaging, marketing and incubation services;
  5. Strengthening of institutions, research and training in the food processing sector; and
  6. 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.
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