Pradhan Mantri Formalisation of Micro Food Processing Enterprises (PMFME) Scheme

Prelims: Current events of national and international importance.

Why in news?

Bihar has secured the first position in India for successfully implementing the PMFME scheme in the financial year 2024-25.

• PMFMPE – It is a Centrally Sponsored Scheme designed to address the challenges faced by the micro-enterprises.
• Launch – June 2020
• Nodal ministry – Ministry of Food Processing Industries.
• Objectives – To support Farmer Producer Organizations (FPOs), Self Help Groups (SHGs), and Producers Cooperatives along their entire value chain.
• To support upgradation and formalization of these enterprises.
• To promote the unorganized sector of the food processing industry and enhance competition.
• Support for Common Infrastructure – It includes infrastructure such as warehouse, cold storage and common processing facility for processing of ODOP produce.
• Convergence framework – The Food Processing Enterprises would be eligible for benefits under the various Government Schemes such as,
  • Start-up Village Entrepreneurship Programme (SVEP)
  • National Rural Livelihood Mission
  • PM MUDRA Yojana and others
• Branding and marketing support – It includes marketing training, standardized common branding and packaging, tie-ups with retail chains and state institutions, and quality control to meet required standards.
• Financial assistance – The scheme provides financial assistance through subsidies with 35% of their project cost.
• The Financial assistance is eligible for,
  • Farmer Producer Organization (FPO)
  • Self-Help Groups
  • Co-operatives
  • Existing Individual Micro Food Processing Entrepreneurs
  • New Units, whether for individuals or groups would only be supported for One District One Product (ODOP).
• Beneficiaries must contribute at least 10% of the project cost, with total investment including working capital up to 20%.
• Bihar has topped the implementation of the scheme with 10,296 applicants has been approved for loan.
• It will promote industries, employment and community-driven enterprises, especially in agrarian districts of Bihar.

References

1. The Times of India| Bihar tops implementation of PMFME scheme
2. My Scheme| PMFMPE Scheme