PMFME Scheme Transforms India's Food Processing Sector

PMFME scheme stands for PM Formalisation of Micro Food Processing Enterprises. It is an initiative launched by the Government of India under the Atmanirbhar Bharat Abhiyan to support and formalize micro enterprises in the food processing sector.


Promote existing micro-enterprises in the unorganized food processing sector and bring them into the formal fold. It particularly focuses on supporting Farmer Producer Organizations (FPOs), producer cooperatives, and Self-Help Groups (SHGs) involved in agri-food processing.


The scheme was launched in 2020 for a period of five years, from 2020-21 to 2024-25.


It is a centrally sponsored scheme with a total outlay of ₹10,000 crore for the five years. The central and state governments share the expenditure in a 60:40 ratio.


The PMFME scheme offers a credit-linked capital subsidy of 35% of project cost, up to ₹10 lakhs per unit, for setting up or upgrading food processing units. Additionally, it provides a 50% grant for marketing and branding support to promote processed food products by FPOs, SHGs, cooperatives, or SPVs.

Who can Apply?

Individuals, proprietorships, partnerships, FPOs, NGOs, cooperatives, SHGs, and Pvt. Ltd. Companies can apply for the scheme.