Prelims – Current events of national importance | Polity & Governance
Why in News?
Recently, Ministry of food processing Industries (MoFPI) Mentioned achievements of the Scheme in empowering Micro – enterprises, women entrepreneurs & Rural Livelihood.
Features
- Expansion – Scheme had originally approval of implementation from 2020 -21 to 2024 -25, has been extended till 2026 September.
- Impacted – Around 1.96 lakh individual micro – enterprises have credit linked subsidy support, with women beneficiaries make up more than 40%.
- Market Amalgamation - MoFPI signed Mou with Government e – Marketplace (GeM) to facilitate the onboarding & marketing of products supported by PMFME.
About Pradhan Mantri Formalization of Micro Processing Enterprises Scheme (PMFME)
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Feature
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Details
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Type
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Centrally Sponsored Scheme
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Launch Year
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2020 (Under Aatmanirbhar Bharat Abhiyan)
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Nodal Agency
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Ministry of Food Processing Industries (MoFPI)
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Capital outlay
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Rs 10,000 Cr
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Target Sector
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Unorganised/informal micro food processing sector (which comprises nearly 25 lakh unregistered units in India).
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Objective of the scheme
- Formalization - Assist unorganized units in obtaining FSSAI registration, GST registration, and adopting improved food safety and quality standards.
- Access to Credit - Provide financial support to individual units and groups to upgrade technology and scale up.
- Wastage Reduction - Strengthen grassroots infrastructure for processing and preservation to reduce post-harvest losses and boost farmers' incomes.
The One District One Product (ODOP) Approach
- The scheme operationalizes the ODOP framework to reap the benefits of economies of scale regarding raw material procurement, common services, and marketing.
- So far, 137 unique products have been identified across 726 districts in 35 States and UTs.
Significant Feature
- Credit-Linked Subsidy:
- Individuals - 35% subsidy maximum up to Rs 10 Lakh for setting up or upgrading micro food processing units.
- Groups (FPOs/FPCs/SHGs/Cooperatives) - 35% credit-linked subsidy (Maximum Rs.3 crore) for establishing Common Infrastructure.
- Seed Capital – Rs 40,000 per SHG member engaged in food processing for working capital and purchasing small tools.
- Branding and Marketing Support - Up to 50% financial grant to groups (FPOs/SHGs/State Agencies) to develop and promote ODOP and regional brands. It covers trademark registration, standardization, and e-commerce integration.
- Common Incubation Centres - Setting up local hubs for processing, product testing, training, and entrepreneurship development (80 approved so far).
Reference: PIB | IAS Parliament
