200,000 micro food processing enterprises covered under PMFME scheme: Govt

Food Processing Industries Minister Chirag Paswan on Thursday announced that over 2 lakh micro enterprises have received credit-linked subsidy under the PMFME scheme since its launch in 2020 to set up processing facilities with a combined investment of Rs 20,300 crore.

The total subsidy amount provided so far under the Pradhan Mantri Formalisation of Micro Food Processing Enterprises (PMFME) scheme is around Rs 6,000 crore, he added.

Paswan said the PMFME Scheme, which was launched in 2020, has been extended till September this year, and the ministry is considering launching PMFME 2.0 with suitable changes to attract more investments in this sector.

 

Addressing an event here, Paswan informed that, under the PMFME scheme, there has been sanction of loans to more than 2 lakh micro food processing enterprises during the last six years. He described it as a "historic milestone".

When asked about the subsidy being provided under this scheme so far, he said it is around Rs 6,000 crore.

The minister said the scheme has leveraged project investments of over Rs 20,300 crore, while generating nearly 11 lakh direct and indirect employment opportunities.

Elaborating more, Paswan mentioned that nearly 90 per cent of beneficiaries are first-generation entrepreneurs and 44 per cent are women entrepreneurs, while over 75,000 PMFME-supported enterprises have entered the formal economy through registrations such as Udyam Aadhaar, Udyam Assist, FSSAI and GST.

The minister said the achievement of 2 lakh beneficiaries demonstrates that this vision is translating into measurable outcomes".

He commended the performance of leading states, including Bihar, Maharashtra, Uttar Pradesh, Tamil Nadu and Madhya Pradesh.

Paswan said there is a need to expand this scheme to cover more people.

In his speech, Paswan discussed the significant business opportunities in this sector.

He said the food processing could at least solve three major challenges -- enhancing farmers' income, creating jobs, and reducing wastage of farm produce.

The minister also stressed the need to counter the false narrative that all processed food is bad. He also asked food businesses not to compromise on quality.

Food Processing Secretary A P Das Joshi said this scheme is inclusive and most of the processing units are located in rural India.

He said these processing units are helping to reduce wastage of farm produce.

Devesh Deval, Joint Secretary in the ministry, stressed the importance of the PMFME scheme that provides end-to-end support to micro food processing entrepreneurs, starting from financial assistance, training, handholding, branding and marketing to market linkage.

He noted that the scheme is not merely supporting enterprises - it is transforming livelihoods, strengthening local value chains and creating sustainable employment opportunities across the country.

The ministry highlighted that the scheme's seed capital support has been availed by more than 4.18 lakh Self Help Group members. More than 1.76 lakh beneficiaries have been trained under the Scheme, of whom 77 percent are women..

During the event, Paswan felicitated the 2nd lakh beneficiary, Inderjeet Singh from Ranchi, Jharkhand and handed over the sanction letter as well as the certificate.

Under the PMFME, a 35 per cent subsidy for individual micro food processing enterprises (Maximum Rs 10 lakh) is being provided to set up or upgrade their individual micro food processing enterprises.

Further, there is a provision of 35 per cent Credit-linked Subsidy for Farmer Producer Organisation (FPO), Farmer Producer Company (FPC), Self Help Group (SHG), etc to set up or upgrade Common Infrastructure (Maximum Rs 3 Crore).

Seed capital of Rs 40,000 is being given per Self Help Group (SHG) member engaged in food processing for working capital and purchase of small tools.

The expenditure under the scheme is shared in a 60:40 ratio between the Central and State Governments, in a 90:10 ratio with the North Eastern and Himalayan States, in a 60:40 ratio with UTs having a legislature, and 100 per cent by the Centre for other UTs.