Why in the news?

  • The PMFME Scheme has reported significant progress across multiple components.

PM Formalisation of Micro Food Processing Enterprises (PMFME) Scheme

  • What is it?: The Pradhan Mantri Formalisation of Micro Food Processing Enterprises (PMFME) Scheme is a centrally sponsored initiative under the Aatmanirbhar Bharat Abhiyan, launched in 2020.
  • Nodal Ministry: Ministry of Food Processing Industries (MoFPI)
  • Aim: To formalize and enhance the competitiveness of micro food processing units in the unorganized sector by setting up or upgrading enterprises, focusing on Farmer-Producer Organizations (FPOs), Self-Help Groups (SHGs), cooperatives, and individual entrepreneurs.
  • Duration: The scheme operates for five years (2020-21 to 2024-25)
  • Features:
    • Financial aid: Credit-linked capital subsidy, grants up to 35% for individuals (max Rs. 10 lakh) and 50% for groups/FPOs/SHGs (max Rs. 3 crore per project) for machinery, packaging, and branding.​
    • Technical and business support: Skill training, handholding, and marketing assistance, with new units prioritized under One District One Product (ODOP).​
    • Capacity building: Access to professional services, labs, and reduced wastage through value addition.​

Source: Press Information Bureau