The Pradhan Mantri Formalisation of Micro Food Processing Enterprises (PMFME) scheme is likely to enter a new five-year phase after achieving its target of sanctioning two lakh micro food processing units across the country.
The Ministry of Food Processing Industries (MoFPI) has proposed extending the central scheme for another five years, from 2026–27 to 2030–31, in line with the period of the 16th Finance Commission. The existing scheme is currently under a temporary extension until September 30.
The proposed next phase, being discussed as PMFME 2.0, could introduce changes aimed at addressing the evolving needs of micro food processing businesses. Among the measures under consideration is an increase in the credit-linked subsidy ceiling, currently capped at ₹10 lakh per unit, along with greater emphasis on women entrepreneurs and enterprises operating in hilly regions.
Union Food Processing Industries Minister Chirag Paswan said that while the scheme had achieved its original target of two lakh units, significant potential for expansion remains. He called for stronger participation from states where implementation has been comparatively slower and invited suggestions for making the next phase more effective.
According to MoFPI Secretary Avinash Joshi, an extension of the scheme, either in its existing form or with revisions, is expected to be announced soon.
Women currently account for nearly 41 per cent of PMFME beneficiaries, while more than 80 per cent are first-time entrepreneurs. The scheme has also generated more than one million direct employment opportunities. Formalisation has reportedly been achieved in around 35–40 per cent of sanctioned units.
Implementation has gathered pace in recent years, with more than half of the scheme’s total expenditure incurred during the last two years.
The government is also looking at ways to provide continued support to enterprises that have already benefited under PMFME. Under the next cycle of the Pradhan Mantri Kisan Sampada Yojana (PMKSY), PMFME beneficiaries are reportedly expected to be exempted from the usual two-year waiting period for receiving further assistance.
Paswan has also highlighted the wider role of food processing in reducing agricultural wastage, improving farmers’ incomes and strengthening India’s position in international food markets. With India expanding its trade relationships, the Ministry sees opportunities for micro and small food businesses to participate more actively in domestic and export value chains.
Having achieved its initial numerical target, the next phase of PMFME is expected to move the focus towards deeper formalisation, stronger market linkages, improved access to finance and technology, and greater participation by women and first-time entrepreneurs.