PM Formalisation of Micro Food Processing Enterprises Scheme (PMFME)

PM FME Scheme (Pradhan Mantri Formalisation of Micro Food Processing Enterprises Scheme) is a Centrally Sponsored Scheme launched by the Ministry of Food Processing Industries on 29 June 2020 under the Aatmanirbhar Bharat Abhiyan with a total outlay of Rs. 10,000 crore. The scheme provides credit-linked capital subsidy of 35% up to Rs. 10 lakh per unit, seed capital of Rs. 40,000 per SHG member, common infrastructure support up to Rs. 3 crore, and 50% branding and marketing grant to eligible micro food processing enterprises across India through the official PM FME Portal.

Introduction of PM FME Scheme: A Brief Insight

India has over 25 lakh micro food processing enterprises spread across every district, village, and urban neighbourhood. These include small pickle makers, home-based spice grinders, local dairy units, millet processors, fish processors, and hundreds of other food businesses that form the backbone of rural and semi-urban food economies. Most of these enterprises operate without any formal registration, without access to institutional credit, without quality certifications, and without any marketing support. They produce quality local food products but remain invisible to the formal market. PM FME Scheme was launched to change this reality permanently.

The Ministry of Food Processing Industries launched the Pradhan Mantri Formalisation of Micro Food Processing Enterprises (PM FME) Scheme on 29 June 2020 under the Aatmanirbhar Bharat Abhiyan. The scheme runs as a Centrally Sponsored Scheme for 5 years from 2020-21 to 2024-25 with a total financial outlay of Rs. 10,000 crore. The Central Government and State Governments share the expenditure in a 60:40 ratio for most states and a 90:10 ratio for North Eastern and Himalayan States. The scheme currently runs across 35 States and Union Territories.

PM FME Scheme operates across five major components. Individual and group micro food processing enterprises receive a credit-linked capital subsidy of 35% of the eligible project cost with a maximum ceiling of Rs. 10 lakh per unit, translating to a maximum subsidy of Rs. 3.5 lakh. SHG members engaged in food processing receive seed capital of Rs. 40,000 per member for working capital and tool purchase. FPOs, cooperatives, and SHGs can access a 35% subsidy up to Rs. 3 crore for common infrastructure, including cold storage, processing facilities, and packaging units. Groups of FPOs, SHGs, and cooperatives receive a 50% grant for branding and marketing activities. All beneficiaries receive free Entrepreneurship Development Programme training through NIFTEM, IIFPT, and partner institutions.

The scheme adopts a unique One District One Product (ODOP) approach where each district identifies one major food product for focused development. States promote district-specific products ranging from mango and millet to fish, spices, honey, dairy, and minor forest produce from tribal regions. Priority goes to enterprises producing ODOP products, though the scheme supports all eligible food processing businesses. This ODOP focus builds local food identity, strengthens supply chains, and creates district-level food processing clusters that benefit both producers and consumers.

As of 31 December 2025, PM FME Scheme sanctioned 1,72,707 loans for credit-linked subsidy. The scheme approved seed capital for 3,65,935 SHG members, sanctioned 101 Common Infrastructure proposals, approved 76 Incubation Centres, and sanctioned 27 Branding and Marketing proposals. The number of food business operators registered across India grew from 25 lakh to 64 lakh since the scheme was launched, reflecting a massive expansion in the formalisation of the food processing sector.

Food processing entrepreneurs who want to scale beyond the micro enterprise stage and access larger institutional funding can explore the PM Mudra Yojana, which provides collateral-free business loans from Rs. 50,000 to Rs. 20 lakh under Shishu, Kishore, and Tarun categories. Women entrepreneurs and SC/ST food processing business owners seeking larger capital for a greenfield enterprise can explore the Stand Up India Scheme, which provides composite bank loans from Rs. 10 lakh to Rs. 1 crore. Food processing startups with innovative products and scalable business models can access DPIIT recognition and tax benefits through the Startup India Scheme and early-stage grant funding through the Startup India Seed Fund Scheme which provides grants up to Rs. 20 lakh through approved incubators. Manufacturers looking to scale production significantly can also explore the Production Linked Incentive Scheme for Food Processing which provides performance-linked incentives on incremental sales above the base year.

Micro food processing entrepreneurs, SHG members, FPO members, cooperative members, and food business owners looking for more financial assistance, credit support, skill development, and market linkage programmes can also explore our complete Central Government Schemes List for detailed information according to their business stage and category.

Benefits Provided Under PM FME Scheme

PM FME Scheme provides five types of financial and non-financial support to eligible micro food processing enterprises, SHGs, FPOs, cooperatives, and groups across India.

1. Credit-Linked Capital Subsidy for Individual and Group Micro Enterprises

• The government provides a credit-linked capital subsidy at 35% of the eligible project cost
• Maximum subsidy per unit:35% of the maximum or up to Rs. 10 lakh
• Applicant contributes a minimum 10% of the project cost from their own funds
• Bank finances the remaining project cost through a loan
• Subsidy covers plant and machinery, technical upgradation, and business expansion costs
• The scheme targets approximately 2 lakh micro enterprises for credit-linked subsidy support

2. Seed Capital for SHG Members

• Each SHG member engaged in food processing receives seed capital of Rs. 40,000
• Maximum seed capital per SHG Federation: Rs. 4 lakh
• Seed capital supports working capital requirements and the purchase of small tools
• Government approved seed capital for 3,65,935 SHG members as of October 2025

3. Common Infrastructure Support for FPOs, SHGs, and Cooperatives

• Credit-linked capital subsidy at 35% of project cost with a maximum ceiling of Rs. 3 crore
• Supports the setting up of common infrastructure, including cold storage, warehouses, processing facilities, and packaging units
• Common infrastructure available for other units and the public to use on a hiring basis
• The government sanctioned 101 proposals for Common Infrastructure Facilities as of October 2025

4. Branding and Marketing Support

• Grant of up to 50% of the eligible cost for branding and marketing activities
• Covers packaging design, quality improvement, branding, and marketing activities
• Available to groups of FPOs, SHGs, Cooperatives, or SPVs of micro food processing enterprises
• The government sanctioned 27 proposals under the Branding and Marketing component as of October 2025

5. Capacity Building and Training

• Free Entrepreneurship Development Programme (EDP) training modified specifically for the food processing industry
• Product-specific technical training and food safety training for selected enterprises
• Training delivered through NIFTEM and IIFPT at the national level and State-level technical institutes
• Collaboration with ICAR, CSIR, Defence Food Research Laboratory (DFRL), and Central Food Technological Research Institute (CFTRI) for specialised training
• 76 Incubation Centres approved to provide hands-on support to food processing entrepreneurs

Overall Scheme Achievement as of December 2025

• 1,72,707 loans sanctioned for credit-linked subsidy as of 31 December 2025
• Centre Share of Rs. 1,142.56 crore released to States and UTs in FY 2024-25 alone
• Total Centre Share released since inception: Rs. 2,841.43 crore
• Food business operators registered across India grew from 25 lakh to 64 lakh

Eligibility Conditions Required to be Fulfilled

PM FME Scheme covers individual micro entrepreneurs, Self Help Groups, Farmer Producer Organisations, cooperatives, and other groups engaged in food processing. The following eligibility conditions apply based on the category of applicant.

Eligibility for Individual and Group Micro Enterprises

• Applicant must own or operate an existing micro food processing unit or plan to set up a new one
• Applicant must be above 18 years of age
• Applicant must have passed at least 8th standard as the minimum educational qualification
• Only one member per family can avail the benefit under the individual category
• An applicant can avail the benefit for only one unit under the scheme
• Applicant must contribute a minimum of 10% of the project cost from their own funds
• Preference given to applicants producing ODOP products, but non-ODOP food processing units are also eligible

Eligibility for Self-Help Groups (SHGs)

• SHG must be engaged in food processing activities
• SHG members engaged in food processing qualify for seed capital of Rs. 40,000 per member
• Maximum seed capital support per SHG Federation is Rs. 4 lakh
• Priority given to SHGs manufacturing products under the ODOP list of their district

Eligibility for FPOs, Cooperatives, and Government Agencies

• FPOs, SHGs, Cooperatives, and Government agencies engaged in food processing qualify for common infrastructure support
• Must be involved in processing ODOP produce for a minimum of 3 years
• FPOs and cooperatives must have a minimum turnover of Rs. 1 crore
• Project cost must not exceed the present annual turnover of the organisation
• The organisation must have internal resources to cover 10% of the project cost and margin money for working capital

Eligibility for Branding and Marketing Support

• Groups of FPOs, SHGs, Cooperatives, or Special Purpose Vehicles (SPVs) of micro food processing enterprises qualify
• Branding and marketing proposal must relate to an ODOP product of the respective district

Eligible Food Processing Sectors

• Millet processing and millet-based products
• Bakery and confectionery products
• Pickle making and condiments
• Spices processing and packaging
• Oil extraction and processing
• Dairy products, including milk, paneer, ghee, and butter
• Fish and seafood processing
• Honey processing and packaging
• Fruit and vegetable processing
• Meat and poultry processing
• Ready-to-eat and ready-to-cook food products
• Traditional Indian products, including turmeric, amla, and minor forest produce in tribal regions

Documents Required to be Attached

Applicants applying under the PM FME Scheme must keep the following documents ready before submitting their application on the official PMFME Portal.

• Aadhaar Card of the applicant
• PAN Card of the applicant
• Bank account details and a passbook copy
• Land ownership documents or a lease agreement for the enterprise location
• Existing enterprise registration documents, wherever applicable
• Detailed Project Report (DPR) or business plan for the proposed upgrade or new unit
• FSSAI registration certificate or proof of FSSAI application
• Udyam Registration (MSME) certificate, wherever applicable
• GST registration certificate, wherever applicable
• Income or revenue documents of the existing unit
• Educational qualification certificate confirming a minimum 8th standard pass for individual applicants
• Caste certificate for SC/ST applicants
• For SHG applicants: SHG passbook, bank account details, and SHG registration documents
• For FPO and Cooperative applicants: registration certificate, audited financial statements, and turnover documents confirming a minimum of Rs. 1 crore turnover
• Legal documents, such as an adoption certificate or a partnership deed, wherever applicable

Important: The exact document requirements may vary based on the category of applicant and the component applied for. Applicants must confirm specific requirements with their District Resource Person or State Nodal Agency before submitting the application.

How Beneficiaries Can Apply to Avail the Benefit of this Scheme

PM FME Scheme accepts both online and offline applications from eligible micro food processing entrepreneurs, SHGs, FPOs, and cooperatives. The online application process through the official PMFME Portal is the primary and fastest route.

Step 1: Visit the official PM FME Scheme portal at pmfme.mofpi.gov.in and click on the Login tab on the homepage. Select New Registration to create a new applicant account.

Step 2: Complete the registration by entering your basic details, including name, mobile number, Aadhaar number, and email ID. On successful registration, the portal generates your login credentials.

Step 3: Log in to the portal using your User ID and password. From the dashboard, select the type of application you want to submit – Individual Application, Group Application, or Common Infrastructure Application based on your category.

Step 4: Fill the complete application form with all required details, including enterprise details, type of food processing activity, ODOP product details if applicable, proposed project cost, machinery details, and fund requirement.

Step 5: Upload all required documents, including Aadhaar Card, PAN Card, bank account details, land documents, FSSAI registration, Udyam Registration, educational qualification certificate, project report, and category-specific documents.

Step 6: Submit the completed application form on the portal. The portal generates an acknowledgement number, which must be kept safe for future reference and status tracking.

Step 7: District Resource Persons and the State Nodal Agency review and scrutinise the submitted application at the district level. Eligible applications move forward for bank appraisal.

Step 8: The bank evaluates the project report and the financial viability of the proposed enterprise. On satisfactory evaluation, the bank sanctions the loan for the remaining project cost after deducting the applicant’s own contribution of a minimum 10%.

Step 9: After bank sanction, the applicant attends the Entrepreneurship Development Programme (EDP) training provided under the scheme. This training covers food safety, business management, quality standards, and product-specific skills.

Step 10: After completing training and fulfilling all scheme conditions, the Government releases the credit-linked subsidy of 35% of the eligible project cost directly into the applicant’s loan account. The maximum subsidy per individual unit is Rs. 10 lakh.

Important: The subsidy is credit-linked, which means it links directly to a bank-financed project. The government does not transfer the full project amount directly. Applicants must arrange their own minimum 10% contribution and take the remaining amount as a bank loan to qualify for the subsidy. Check the ODOP product list for your district at odop.mofpi.gov.in/odop before applying to check if your product qualifies for priority support.

Important Links Available

• PM FME Scheme Official Portal.
• PM FME Scheme Applicant Login and Registration.
• One District One Product (ODOP) Products List.
• Ministry of Food Processing Industries Official Portal.

Contact Details in Case of Help Needed

Applicants facing issues related to PM FME Scheme registration, application submission, subsidy queries, ODOP product details, or scheme-related clarifications can contact us through the following official channels.

• Helpline Numbers: 9254997101, 9254997102, 9254997103, 9254997104, 9254997105
• Timings: Monday to Friday 9:00 AM to 5:30 PM
• Email: support-pmfme@mofpi.gov.in
• Ministry of Food Processing Industries
  Panchsheel Bhavan, August Kranti Marg,
  New Delhi 110049

Frequently Asked Questions (FAQs)

Q. What is the PM FME Scheme?

Ans. PM FME Scheme is the Pradhan Mantri Formalisation of Micro Food Processing Enterprises Scheme launched by the Ministry of Food Processing Industries on 29 June 2020 under the Aatmanirbhar Bharat Abhiyan. The scheme provides financial, technical, and business support to micro food processing enterprises to upgrade their operations, access credit, improve branding, and formalise their businesses.

Q. What is the total outlay of the PM FME Scheme?

Ans. The total financial outlay of the PM FME Scheme is Rs. 10,000 crore for a period of 5 years from 2020-21 to 2024-25. The Central Government and State Governments share the expenditure in a 60:40 ratio for most states and a 90:10 ratio for North Eastern and Himalayan States.

Q. What is the credit-linked capital subsidy under the PM FME Scheme?

Ans. Eligible individual and group micro food processing enterprises receive a credit-linked capital subsidy of 35% of the eligible project cost with a maximum ceiling of Rs. 10 lakh per unit. The maximum subsidy a beneficiary can receive is Rs. 10 lakh. The applicant must contribute a minimum of 10% of the project cost from their own funds and avail a bank loan for the remaining amount.

Q. What is the One District One Product (ODOP) approach under the PM FME Scheme?

Ans. Under the ODOP approach, each district identifies one major food product for focused development and support. States promote district-specific food products such as mango, millet, fish, spices, honey, dairy products, and minor forest produce. Priority goes to enterprises producing ODOP products, but the scheme also supports other food processing enterprises.

Q. Who can apply under the PM FME Scheme?

Ans. Individual micro food processing entrepreneurs, Self Help Groups (SHGs), Farmer Producer Organisations (FPOs), cooperatives, partnerships, proprietorships, NGOs, and private limited companies engaged in food processing can apply under the scheme.

Q. What is the minimum educational qualification for individual applicants?

Ans. Individual applicants must have passed at least 8th standard as the minimum educational qualification to qualify for support under the PM FME Scheme.

Q. Can an applicant avail a benefit for multiple units?

Ans. No. Each applicant can avail a benefit for only one unit under the scheme. Only one member per family can avail the individual category benefit.

Q. What seed capital support do SHG members receive?

Ans. Each SHG member engaged in food processing receives seed capital of Rs. 40,000 for working capital and the purchase of small tools. The maximum seed capital support per SHG Federation is Rs. 4 lakh.

Q. What is the common infrastructure support under the PM FME Scheme?

Ans. FPOs, SHGs, cooperatives, and Government agencies can avail a credit-linked capital subsidy of 35% of project cost with a maximum of Rs. 3 crore for setting up common infrastructure such as cold storage, warehouses, processing facilities, and packaging units.

Q. What branding and marketing support does the scheme provide?

Ans. Groups of FPOs, SHGs, cooperatives, or SPVs of micro food processing enterprises can receive a grant of up to 50% of the eligible cost for branding and marketing activities, including packaging design, quality improvement, and market promotion. The proposal must relate to an ODOP product.

Q. Is the PM FME Scheme a direct cash transfer scheme?

Ans. No. PM FME Scheme is a credit-linked subsidy scheme. The Government does not directly transfer the full project amount to the applicant. The subsidy links to a bank-financed project where the applicant contributes a minimum 10% from their own funds, avails a bank loan for the remaining amount, and the Government releases the 35% subsidy directly into the loan account after fulfilling scheme conditions.

Q. How many loans has the scheme sanctioned so far?

Ans. PM FME Scheme sanctioned 1,72,707 loans for credit-linked subsidy as of 31 December 2025. The scheme also approved seed capital for 3,65,935 SHG members and sanctioned 101 proposals for Common Infrastructure Facilities.

Q. Where can eligible applicants apply for the PM FME Scheme?

Ans. Eligible applicants can register and apply online through the official PM FME Scheme portal at pmfme.mofpi.gov.in.

Q. What training does the scheme provide?

Ans. PM FME Scheme provides free Entrepreneurship Development Programme (EDP) training modified specifically for the food processing industry. Training covers food safety, business management, quality standards, and product-specific skills through NIFTEM, IIFPT, and State-level technical institutes in collaboration with ICAR, CSIR, DFRL, and CFTRI.

Q. What is the ODOP product list and where can applicants check it?

Ans. The ODOP product list contains the specific food product identified by each State for each district under the One District One Product approach. Applicants can check the complete district-wise ODOP product list at odop.mofpi.gov.in/odop.

Tabassum

Tabassum is a government schemes researcher and writer with 5 years of experience tracking Central and State welfare programmes across India. She has covered 500+ schemes spanning agriculture, women welfare, education, and housing, helping lakhs of beneficiaries understand their entitlements in simple language.