Pradhan Mantri Formalization of Micro Processing Enterprises (PMFME) Scheme

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)

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