About Pradhan Mantri Formalisation of Micro Food Processing Enterprises (PMFME) Scheme:
- Launched on June 29, 2020, PMFMPE is a Centrally Sponsored Scheme by the Ministry of Food Processing Industries.
- It is designed to address the challenges faced by micro-enterprises and to tap the potential of groups and cooperatives to support the upgradation and formalization of these enterprises.
- Objectives: To build the capability of microenterprises to enable:
- Increased access to credit by existing micro food processing entrepreneurs, FPOs, self-help groups, and co-operatives.
- Integration with an organized supply chain by strengthening branding & marketing.
- Support for the transition of existing 200,000 enterprises into a formal framework.
- Increased access to common services like common processing facilities, laboratories, storage, packaging, marketing, and incubation services.
- Strengthening of institutions, research, and training in the food processing sector; and
- Increased access for enterprises to professional and technical support.
- Outlay:
- The scheme envisages an outlay of ₹ 10,000 crores over a period of five years from 2020-21 to 2024-25.
- The expenditure under the scheme would be shared in a 60:40 ratio between Central and State Governments, in a 90:10 ratio with the Northeastern and the Himalayan States, a 60:40 ratio with UTs with the legislature, and 100% by the Center for other UTs.
- Coverage:
- Under the scheme, 2,00,000 micro food processing units will be directly assisted with credit-linked subsidies.
- Adequate, supportive common infrastructure and institutional architecture will be supported to accelerate the growth of the sector.
- Benefits: The program has four broad components addressing the needs of the sector:
- Support to individuals and groups of micro-enterprises.
- Branding and Marketing support.
- Support the strengthening of institutions.
- Setting up a robust project management framework.
- Financial Support:
- Support to Individual micro units:
- Micro enterprises will get credit-linked subsidy @ 35% of the eligible project cost with a ceiling of Rs.10 lakh.
- Beneficiary contribution will be a minimum 10% and balance from the loan.
- On-site skill training & Handholding for DPR and technical upgradation.
- Support to FPOs/SHGs/Cooperatives:
- Seed capital will be given to SHGs (@Rs. 4 lakh per SHG) for loans to members for working capital and small tools.
- Credit linked capital subsidy @35% subject to a maximum of Rs. 3 crore, to support FPOs, SHGs, Cooperatives, and any Government agency for setting up common infrastructure.
- Grant up to 50% for Branding and Marketing to groups of FPOs/ SHGs/ Cooperatives or an SPV of micro food processing enterprises.
- Skill training & Handholding support.
- Credit linked capital subsidy
- The Eligible Borrowers for PMFMPE can be:
- Farmer Producer Organization (FPO)
- Self-Help Groups
- Co-operatives
- Existing Micro Food Processing Entrepreneurs
- New Units, whether for individuals or groups, would only be supported for One District One Product (ODOP).
