Ministry of Food Processing Industries Implements PM Formalization Scheme for Micro Food Processing Enterprises

In line with the Atmanirbhar Bharat Abhiyan initiative, the Ministry of Food Processing Industries (MoFPI) is actively executing the centrally sponsored PM Formalization of Micro Food Processing Enterprises (PMFME) scheme. This initiative, aimed at fostering financial, technical, and business support, focuses on establishing and upgrading microfood processing enterprises across the nation. With a dedicated budget of Rs 10,000 crore spanning five years from 2020–21 to 2024–25, the scheme aims to support 2 lakh microfood processing enterprises.

To strengthen the local food processing sector, the PMFME scheme adopts a One District, One Product (ODOP) approach. This strategy seeks to capitalize on the advantages of scale in procurement, common service utilization, and product marketing. The scheme serves as a framework for value chain development, aligning support infrastructure accordingly.

Conspicuously, the branding and marketing component of the PMFME scheme extends support to entities such as farmer producer organizations (FPOs), self-help groups (SHGs), cooperatives, or special purpose vehicles (SPVs) associated with ODOP-based microfood processing enterprises. This support encompasses market studies, product standardization, packaging materials, quality control, adherence to food safety standards for retail sales, warehousing, storage rentals, marketing, and promotion.

As part of the credit-linked subsidy component, the PMFME scheme has successfully sanctioned 62,282 loans to date. This includes 61,796 individual beneficiaries, 34 Farmers Producer Organizations (FPOs), 433 Self-Help Groups (SHGs), and 19 Producer Co-operative Societies.