PMFME Scheme

Scheme Introduction: A Brief Overview

Many small food-processing businesses start with local products, traditional methods and limited resources. However, upgrading a small unit, buying better equipment and reaching larger markets can require additional financial and technical support. The Pradhan Mantri Formalisation of Micro Food Processing Enterprises (PMFME) Scheme helps eligible food-processing businesses with financial assistance, bank credit, training, infrastructure and market support.

Launched on 29 June 2020 under the Aatmanirbhar Bharat Abhiyan, the PMFME Scheme aims to formalise and strengthen small food-processing enterprises. The scheme also follows the One District One Product (ODOP) approach, which promotes locally important food products and supports their processing, packaging, branding and marketing. The scheme was originally designed to support 2 lakh micro food-processing units.

The scheme is implemented by the Ministry of Food Processing Industries (MoFPI), Government of India, in partnership with State and Union Territory governments. District-level authorities, District Resource Persons (DRPs) and lending institutions also play an important role in implementing the scheme.

For eligible individual units, the main financial benefit is a 35% credit-linked capital subsidy on the eligible project cost, up to ₹10 lakh per unit. The beneficiary generally contributes at least 10% of the project cost, while the remaining amount is arranged through bank finance.

The scheme also provides support to groups and other eligible beneficiaries. SHG members engaged in food processing can receive ₹40,000 per member as seed capital, subject to the applicable limits. Eligible common infrastructure projects can receive a 35% credit-linked subsidy up to ₹3 crore, while eligible group proposals can receive branding and marketing support of up to 50% of eligible expenditure.

PMFME support is not limited to financial assistance. Beneficiaries can also receive training in entrepreneurship, food processing, food safety and hygiene, along with guidance on registrations such as Udyam and FSSAI, wherever applicable. District Resource Persons can help applicants prepare the project report, complete the application and approach the bank for finance.

The eligibility requirements depend on the type of applicant and the proposed activity. Individual applicants generally need to be 18 years or older and have passed Class VIII. Existing eligible food-processing units can receive support for upgradation, while eligible new units are generally supported for the ODOP product identified for the district. Separate conditions apply to SHGs, FPOs, cooperatives and other group applicants.

Eligible applicants can apply through the official PMFME portal. After submitting the application and required documents, the proposal goes through the prescribed district-level process and is considered by the lending institution for loan appraisal. A DRP can provide handholding support throughout the application and project preparation process.

The Pradhan Mantri Formalisation of Micro Food Processing Enterprises (PMFME) Scheme is particularly relevant for entrepreneurs working with locally important food products who want to improve processing, machinery, packaging, food safety, branding or market access. Readers interested in larger food-processing infrastructure can also explore PM Kisan Sampada Yojana, which supports different areas of the food-processing value chain, including processing infrastructure, cold chain and other related facilities. Those looking for financing support for eligible agricultural infrastructure such as storage, cold-chain and processing-related projects can also read about the Agriculture Infrastructure Fund (AIF).

How Does the PMFME Subsidy Work?

The Pradhan Mantri Formalisation of Micro Food Processing Enterprises (PMFME) Scheme subsidy is not paid as an unrestricted cash amount directly to the applicant. It is a credit-linked capital subsidy connected with the bank-financed project. The applicant contributes part of the project cost, the bank provides the eligible loan amount and the Government subsidy is handled through the prescribed banking mechanism.

• Eligible individual units can receive a subsidy of 35% of the eligible project cost, up to ₹10 lakh.
• The beneficiary has to contribute at least 10% of the project cost.
• The remaining eligible amount is generally arranged through a bank loan.
• The subsidy is linked to eligible capital expenditure rather than being calculated on the entire business expenditure.
• Land cost is not included in the eligible project cost. Technical civil work is subject to the applicable ceiling.

After the bank sanctions the loan, the subsidy is transferred to a mirror or transient account maintained with the lending bank. It is not immediately treated as an amount available for withdrawal by the beneficiary.

The subsidy remains linked to the loan for the prescribed period. During the three-year period, the beneficiary is expected to keep the unit operational and maintain the loan account in accordance with the scheme conditions. If the applicable conditions are fulfilled after three years and the loan remains standard, the subsidy is adjusted against the outstanding loan amount.

Scheme Benefits

The Pradhan Mantri Formalisation of Micro Food Processing Enterprises (PMFME) Scheme provides financial assistance and other support to individual entrepreneurs, SHGs, FPOs, cooperatives and eligible food-processing enterprises. The major benefits are:

1. Credit-Linked Subsidy for Individual Units

• Subsidy: 35% of eligible project cost.
• Maximum subsidy: ₹10 lakh per unit.
• Beneficiary contribution: Minimum 10% of project cost.
• Balance funding: Generally financed through a bank loan.

2. Seed Capital for SHGs (Self-Help Groups)

• Seed capital: ₹40,000 per eligible SHG member.
• Maximum support: ₹4 lakh per SHG federation.
• Purpose: Working capital and purchase of small tools.
• Eligibility: SHG members already engaged in food processing.

3. Support for FPOs and Cooperatives

• Financial assistance: 35% credit-linked grant for eligible capital investment.
• Minimum turnover: ₹1 crore for eligible FPOs and producer cooperatives.
• DPR assistance: ₹50,000 for preparation of the Detailed Project Report.
• Additional support: Eligible groups can also access infrastructure, branding and capacity-building components.

4. Common Infrastructure Support

• Subsidy: 35% credit-linked subsidy.
• Maximum support: Up to ₹3 crore.
• Facilities: Common processing, storage, cold storage, packaging and testing facilities.
• Common Incubation Centres: Processing facilities can be made available to multiple smaller enterprises.

5. Branding and Marketing Support

• Grant: Up to 50% of eligible expenditure.
• Minimum product turnover: ₹5 crore for eligible proposals.
• DPR assistance: Up to ₹5 lakh.
• Coverage: Branding, packaging, product standardisation, quality control and market development.

6. Training and Capacity Building

• Funding: 100% centrally funded under the applicable framework.
• Training: Entrepreneurship and business management.
• Food safety: Hygiene, food safety and FSSAI requirements.
• Formalisation: Udyam and GST requirements, wherever applicable.
• Technical skills: Product-specific processing, handling and quality improvement.
• Training institutions: NIFTEM, NIFTEM-Thanjavur and eligible State Level Technical Institutions.

7. One District One Product (ODOP) Support

• Focus: Promotion of district-specific food products.
• New units: Generally supported for the district's identified ODOP product.
• Existing units: Can receive support for other eligible food-processing activities as permitted under the guidelines.

8. Handholding Support through District Resource Persons

• DPR support: Assistance in preparing the project report.
• Application support: Help with completing the PMFME application.
• Bank assistance: Support in approaching the lending bank.
• Formalisation: Guidance for FSSAI, Udyam and GST registration, wherever applicable.

9. Upgradation and Formalisation of Existing Units

• Existing units: Eligible food-processing enterprises can receive financial support for upgradation and improvement of their existing operations.
• Formalisation: Beneficiaries can receive guidance for registrations and compliance requirements such as Udyam, FSSAI and GST, wherever applicable.
• Business improvement: Support can help existing units improve processing capacity, product quality, packaging and overall business operations.

10. ODOP-Based Market and Infrastructure Support

• Local product development: The ODOP approach promotes food products that are identified as important to a particular district.
• Infrastructure: Eligible ODOP-based enterprises and groups can benefit from applicable common processing and storage facilities.
• Branding and market access: Eligible groups can receive support for branding, packaging and market development under the applicable components.

Eligibility Requirements

Before applying for the Pradhan Mantri Formalisation of Micro Food Processing Enterprises (PMFME) Scheme, applicants should check the eligibility conditions applicable to their category. The requirements differ for individual entrepreneurs, SHGs, FPOs and cooperatives.

1. Eligibility for Individual Applicants

• Age: The applicant must be at least 18 years old.
• Education: No minimum qualification.
• Type of enterprise: The enterprise should generally be an unincorporated micro food-processing unit, such as a proprietorship or partnership firm, with fewer than 10 workers.
• Ownership: The applicant should own the food-processing enterprise for which assistance is being sought.
• Existing units: Eligible existing food-processing units can apply for upgradation, subject to the scheme conditions.
• New units: New units are generally supported for the ODOP product identified for the district.
• One beneficiary per family: Only one person from a family can receive assistance under the individual component. The family includes the applicant, spouse and children.
• Own contribution: The applicant must contribute at least 10% of the eligible project cost and arrange the remaining amount through bank finance.
• Micro-enterprise criteria: The enterprise must meet the applicable PMFME micro-enterprise criteria.
• Eligible activity: The proposed business must involve eligible food-processing activities. Trading, selling unprocessed products and food-service activities such as restaurants are not covered under the individual food-processing component.
• Location: The unit should be located in the applicant's home district, as required under the applicable guidelines.

2. Eligibility for Self Help Groups (SHGs)

• Existing activity: The SHG member should already be engaged in food-processing activities to receive seed capital.
• Use of seed capital: The assistance can be used for working capital and purchasing small tools.
• Rural SHGs: Eligible rural SHGs are supported through the applicable DAY-NRLM framework.
• Urban SHGs: Eligible urban SHGs can access the applicable DAY-NULM convergence mechanism.

3. Eligibility for FPOs and Producer Cooperatives

• Eligible organisations: FPOs, Farmer Producer Companies and producer cooperatives involved in food processing can apply under the relevant component.
• Turnover: Eligible FPOs and producer cooperatives generally require a minimum turnover of ₹1 crore.
• Experience: Members should generally have the required experience in dealing with the relevant product, with the applicable guidelines specifying at least three years.
• Project requirement: The proposed project should relate to eligible food-processing or value-chain activities covered under the scheme.

4. Formalisation and Regulatory Requirements

• Udyam registration: Applicants should complete Udyam registration wherever applicable.
• FSSAI: The required FSSAI registration or licence should be obtained according to the nature and scale of the food-processing activity.
• GST: GST registration should be completed wherever applicable under the relevant rules.
• Other approvals: Applicants must obtain other licences or clearances applicable to their specific business and project.

Required Documents

The documents required under the PMFME Scheme depend on the type of applicant and the component under which assistance is being sought.

For Individual Applicants

• PAN card
• Aadhaar card and recent photograph
• Valid address proof
• Class VIII qualification proof, where required
• Six-month bank statement
• Ownership proof or valid rent/lease documents of the unit
• Detailed Project Report (DPR) or project details
• Machinery and equipment quotations
• Photographs of the existing unit, where applicable
• Udyam Registration or trade licence, where applicable
• FSSAI registration or licence, where applicable
• GST registration and returns, where applicable
• Income Tax Returns and audited financial statements for existing units, where applicable
• Details of existing machinery and equipment, where applicable
• Caste certificate, where applicable

For Self Help Groups (SHGs)

• SHG registration and basic group details
• Details of SHG members
• Bank account and banking details
• Details or proof of existing food-processing activity
• Details of the proposed use of seed capital
• Relevant SHG federation documents, where applicable

For FPOs and Producer Cooperatives

• Registration and constitutional documents
• Details of members, directors or office bearers, as applicable
• Financial statements and bank records
• Documents supporting the applicable turnover requirement
• Details of members' relevant product experience, where required
• Detailed Project Report (DPR)
• Machinery quotations and project cost details

For Common Infrastructure Projects

• Registration and legal documents of the eligible entity
• Land, ownership or lease documents for the proposed facility
• Detailed Project Report (DPR)
• Machinery, equipment and infrastructure quotations
• Relevant financial and bank documents

For Branding and Marketing Proposals

• Registration and organisational documents
• Details of the food products proposed for branding
• Documents supporting the applicable product turnover
• Branding and marketing DPR
• Relevant financial documents

Steps to Apply

The application process under PMFME differs according to the type of applicant. Individual entrepreneurs, SHGs, FPOs and cooperatives follow the applicable route for their category.

Steps to Apply for Individual Entrepreneurs

1. Visit the official PMFME portal and select Individual Beneficiary to register.
2. Enter your personal and enterprise details and confirm that you meet the applicable eligibility conditions.
3. If you are applying for a new unit, select the applicable ODOP product of your district.
4. Upload the required documents, including identity proof, address proof, bank statement, ownership or lease documents and machinery quotations.
5. Enter your project cost, financial details and proposed bank loan. Existing units should provide the required past financial information, including at least two years of data as specified in the applicant instructions.
6. Review the projected financial report generated by the system. The projected Net Profit Ratio should be at least 8% as specified in the applicant instructions.
7. Submit the application after checking all the details and uploaded documents.
8. The application then goes through the prescribed district-level process and is considered by the lending bank for loan appraisal and sanction.
9. A District Resource Person (DRP) can assist with the DPR, application, bank process and applicable registrations.

Steps to Apply for SHGs

1. Eligible SHGs should follow the application route applicable to their location and category.
2. Rural SHGs generally access PMFME seed capital through the DAY-NRLM framework.
3. Urban SHGs can access the applicable convergence mechanism under DAY-NULM.
4. The SHG should provide the required member, activity, bank and project-related details.
5. Eligible members already engaged in food processing can receive seed capital of ₹40,000 per member, subject to the applicable limits and guidelines.

Steps to Apply for FPOs and Cooperatives

1. FPOs, Farmer Producer Companies and producer cooperatives should follow the applicable group application process.
2. Prepare the required Detailed Project Report (DPR) describing the proposed food-processing or value-chain project.
3. Submit the organisation's registration, financial, turnover, member and project-related documents as required.
4. Eligible group applicants can receive ₹50,000 assistance for DPR preparation, subject to the applicable component guidelines.
5. The proposal is examined through the prescribed process before being considered for bank finance and applicable PMFME support.

Steps to Apply for Other Group Components

1. Eligible SHGs, FPOs, cooperatives and other qualifying organisations should identify the relevant PMFME component, such as common infrastructure, branding and marketing.
2. Prepare the DPR and supporting documents according to the requirements of the selected component.
3. Submit the proposal through the applicable State Nodal Agency or prescribed application process.
4. The proposal is then examined and processed according to the relevant PMFME guidelines.

Applicants should check the applicable guidelines and keep all required documents ready before submission. A District Resource Person can also help eligible applicants understand the process and prepare the required project documents.

Before submitting the application, check your project cost, bank details, financial figures and uploaded documents once again. You can refer to the official PMFME Applicant Instruction Sheet while completing the application.

Latest Update on PMFME Scheme 2026

The PMFME Scheme has reached an important transition point in 2026. The scheme was originally approved for the period from 2020-21 to 2024-25 and was subsequently continued through 2025-26. For the current period, the scheme has been reported to have received an interim extension up to 30 September 2026.

MoFPI has also been reported to be working on a proposal for continuation of the scheme for 2026-31. However, the proposed continuation and any changes to the existing subsidy limits or eligibility conditions should not be treated as final until the Government issues the relevant official approval or notification.

Therefore, applicants should distinguish between the existing PMFME provisions and proposed changes. The currently established individual-unit benefit remains a 35% credit-linked subsidy, subject to a maximum of ₹10 lakh, unless a subsequent official notification changes the applicable provisions.

Relevant Links

• Ministry of Food Processing Industries (MoFPI) Official Website
• PMFME Scheme Official Portal
• PMFME Scheme Guidelines
• PMFME Applicant Instruction Sheet
• PMFME Frequently Asked Questions
• PMFME District Resource Person (DRP) Manual
• PMFME Group Application Forms
• PMFME ODOP List

Contact Information

For PMFME-related application or scheme queries, applicants can contact the PMFME support team or their respective State Nodal Agency. The official PMFME portal also provides details of State Nodal Agencies and District Resource Persons for further assistance.

PMFME Support

• Phone: 9254997101, 9254997102, 9254997103, 9254997104, 9254997105
• Email: [email protected]

Ministry of Food Processing Industries (MoFPI)

• Phone: 011-26406500
• Email: [email protected]
• Address: Panchsheel Bhawan, August Kranti Marg, Khelgaon, New Delhi-110049

Applicants who need state- or district-level assistance can use the official PMFME MIS portal to access State Nodal Agency and District Resource Person details. The PMFME support system also advises applicants to contact their respective State Nodal Agency for assistance.