The Pradhan Mantri Formalisation of Micro Food Processing Enterprises (PMFME) Scheme is a centrally-sponsored Government of India initiative to formalize and boost micro food processing businesses across India. It supports small food units with credit-linked subsidy up to 35% of eligible project cost, training, branding, and marketing assistance to improve competitiveness and formalization in the sector.
The main goals of PMFME are:
Formalize unorganized micro food processing enterprises
Provide affordable credit with subsidy support
Enhance skills, quality, and food safety
Improve market access and branding
Promote local and district-specific products (One District One Product – ODOP)
| Feature | ???? Details |
|---|---|
| Subsidy Rate | 35% credit-linked subsidy on eligible project cost |
| Max Subsidy – Individual Unit | Up to ?10,00,000 per unit |
| SHG Seed Capital | ?40,000 per member |
| Common Infrastructure Subsidy | Up to ?3 Crore for groups/FPOs |
| Branding & Marketing Support | Up to 50% grant for marketing activities |
| Training and Skill Support | Technical and business training programs |
To qualify for PMFME benefits:
? Applicant must be 18 years or older
? Indian citizens involved in micro food processing
? Both new and existing micro units eligible
? Entities like Individuals, Proprietorships, SHGs, FPOs, Cooperatives can apply
? Business must be food processing related (not pure retail)
? Applicant must contribute at least 10% of the eligible project cost
35% of eligible project cost linked to bank loan.
Max ?10 lakh subsidy per individual processing unit.
Subsidy credited to the loan account (reducing principal).
?40,000 per SHG member for working capital and tools.
35% grant support up to ?3 Crore for shared processing facilities.
The scheme was operational from 2020 and continues up to the financial year 2025–26. Applications should be completed before March 31, 2026, unless extended by the government.
Decide your food processing business — e.g., mango pulp, bakery, spice processing, dairy, snacks, etc.
Register at the official PMFME portal (pmfme.mofpi.gov.in). Prepare documents like Aadhaar, Bank Passbook, FSSAI, Udyam, GST, and business proof.
Create a project report detailing your business plan, investment needs, production, marketing, and financial projections. Many District Resource Persons provide assistance.
Submit required documents and the DPR for bank appraisal. After approval, a loan is sanctioned.
Once the unit is set up and operational, the 35% subsidy gets credited to your loan account, reducing the principal amount.
| Merits (Benefits) | Demerits (Challenges) |
|---|---|
| Encourages food startups | Documentation can be complex |
| Reduces capital burden via 35% subsidy | Bank loan approval may be slow |
| Training & market support provided | Some technical clearances may delay funds |
| Helps formalize micro units | Only up to March 2026 (subject to extension) |
| Applicable for groups & individuals | 10% own contribution required |
???? Subsidy is credited to the loan account, not given in cash.
???? Your contribution is usually minimum 10% of project cost.
???? Training and branding assistance help in business scale-up.
???? ODOP approach enhances regional product branding.
? Aadhaar Card
? Bank Account Passbook
? FSSAI Registration
? Udyam/MSME Registration
? Project Report (DPR)
? Business address proof
1. What is PMFME Scheme?
It is a government initiative providing financial assistance (35% subsidy) for micro food processing units.
2. Who is eligible for PMFME?
Individuals, SHGs, FPOs, cooperatives and small food businesses with proper documentation.
3. What is the maximum subsidy available?
Up to ?10 lakh subsidy for individual units.
4. Is subsidy given upfront?
No. Subsidy is credited to your bank loan account after project setup.
5. Can I start from home?
Yes, home-based food units (like pickle, papad, bakery) can apply.
6. Do I need a bank loan?
Yes, subsidy is linked to a sanctioned bank loan.
7. Is training provided?
Yes, scheme includes skill and business training support.
8. Can SHGs apply?
Yes. SHG members get seed capital plus group benefits.
9. Does it support branding?
Yes, there’s grant support for marketing & packaging.
10. Till when can I apply?
Scheme runs through March 31, 2026 (may extend further).
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