Over 100,000 Micro Food Processing Enterprises Benefit from the PMFME Scheme

As of October 31, a total of 108,580 Micro Food processing enterprises have received approval for assistance under the PM Formalisation of Micro Food Processing Enterprises (PMFME) scheme, as reported to Parliament on Thursday.

The Ministry of Food Processing Industries (MoFPI) offers financial, technical, and business support for the establishment or upgrading of micro-food processing enterprises through the PMFME scheme.

This initiative is active from the 2020-21 fiscal year to 2025-26, with a total budget of ₹10,000 crore, according to Union Minister of State for Food Processing Industries, Ravneet Singh Bittu, in a written response to the Lok Sabha.

The ministry has been encouraging food processing entrepreneurs, including those in small and medium enterprises, to establish and expand related industries through various initiatives such as the Central Sector Pradhan Mantri Kisan SAMPADA Yojana (PMKSY), the Production Linked Incentive Scheme for Food Processing Industry (PLISFPI), and the centrally-sponsored PMFME scheme nationwide.

As part of the PMKSY sub-schemes, the ministry offers primarily credit-linked financial assistance (capital subsidy) to entrepreneurs, with a total allocation of Rs 5,520 crore for the 15th Finance Commission cycle.

Additionally, the ministry has approved the establishment of 41 mega food parks, 399 cold chain projects, 76 agro-processing clusters, 559 food processing units, 61 projects for creating backward and forward linkages, and 51 Operation Green projects under the relevant components of PMKSY, as of October 31 this year.

Conversely, the PLISFPI initiative is designed to foster the development of global food manufacturing leaders and promote Indian food brands in the international marketplace.

This scheme is set to be executed over a six-year timeframe, spanning from 2021-22 to 2026-27, with a budget allocation of Rs 10,900 crore. According to Bittu’s response, 171 food processing companies have already received approval for assistance across various categories of the scheme.

 

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