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Ministry of Food Processing Industries

Pradhan Mantri Formalisation Of Micro Food Processing Enterprises

Credit Linked Subsidy
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Launched on 29th June 2020, PMFMPE is a Centrally Sponsored Scheme by the Ministry of Food Processing Industries, 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.

1. Enhance the competitiveness of existing individual micro-enterprises in the unorganized segment of the food processing industry and promote formalization of the sector; and
2. Support Farmer Producer Organizations (FPOs), Self Help Groups (SHGs), and Producers Cooperatives along their entire value chain.

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 2,00,000 enterprises into a 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 envisages an outlay of ₹ 10,000 crores over a period of five years from 2020-21 to 2024-25. The expenditure under the scheme would be shared in a 60:40 ratio between Central and State Governments, in a 90:10 ratio with the North
In Eastern and the Himalayan States, a 60:40 ratio with UTs with the legislature and 100% by the Center for other UTs.

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.

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