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Pradhan Mantri Formalisation of Micro food processing Enterprises

Pradhan Mantri Formalisation of Micro food processing Enterprises


Ministry of Food Processing Industries inaugurated the capacity building component of the Pradhan Mantri Formalisation of Micro food processing Enterprises (PM-FME Scheme).


  • The unorganized food processing sector comprising nearly 25 lakh units which contribute to 74% of employment in the food processing sector.
  • Nearly 66% of these units are located in rural areas and about 80% of them are family-based enterprises supporting livelihood in rural households and minimizing their migration to urban areas.
  • The units face a number of challenges such as lack of access to modern technology & equipment, training, access to institutional credit, lack of basic awareness on quality control of products, and lack of branding & marketing skills which limit their performance and growth.

PM-FME Scheme:

  • It is an all India Centrally Sponsored Scheme under the Aatmanirbhar Bharat Abhiyan, for providing financial, technical, and business support for up-gradation of existing micro food processing enterprises.
  • The Scheme adopts the One District One Product (ODOP) approach to reap the benefit of scale in terms of procurement of inputs, availing common services and marketing of products.
  • The scheme would provide support to FPOs/SHGs/Producer Cooperatives for capital investment along the entire value chain with credit linked grant at 35%.
  • Under the capacity building component of the PM-FME scheme, training of the Master Trainers would be delivered through online mode, classroom lecture and demonstration, and self-paced online learning material.
  • The scheme envisions to directly assist the 2 Lakh micro food processing units over a period of five years from 2020-21 to 2024-25.


  • Support for capital investment for up-gradation and formalization with registration for GST, FSSAI hygiene standards, and Udyog Aadhaar.
  • Capacity building through skill training, imparting technical knowledge on food safety, standards & hygiene, and quality improvement.
  • Handholding support for the preparation of DPR, availing bank loans, and up-gradation.
  • Support to Farmer Producer Organizations (FPOs), Self Help Groups (SHGs), producers cooperatives for capital investment, common infrastructure, and support branding and marketing.


  • The scheme would support the strengthening of backward and forward linkages, provision of common facilities, incubation centers, training, R&D, marketing & branding, provision of which would primarily be for ODOP products.
  • All individuals & institutions members receiving grants would undergo training for up-gradation of their skills.
  • The scheme lays special focus on SCs/STs, women and aspirational districts and FPOs, SHGs, and producer cooperatives.

Source: PIB