PMFME scheme

Subject: Schemes

Context:

Centre has launched aRs 10,000 crore scheme for micro enterprises

Concept:

Pradhan MantriFormalisation of Micro Food Enterprises (PM FME) aims to bring in new technology, apart from affordable credit to help small entrepreneurs penetrate new markets.
Objectives:

• Increase in access to finance by micro food processing units.
• Increase in revenues of target enterprises.
• Enhanced compliance with food quality and safety standards.
• Strengthening capacities of support systems.
• Transition from the unorganized sector to the formal sector.
• Special focus on women entrepreneurs and Aspirational districts.
• Encourage Waste to Wealth activities.
• Focus on minor forest produce in Tribal Districts.

Salient features:

• Centrally Sponsored Scheme. Expenditure to be shared by Government of India and States at 60:40.
• 2,00,000 micro-enterprises are to be assisted with credit linked subsidy.
• Scheme will be implemented over a 5 year period from 2020-21 to 2024-25.
• Cluster approach.
• Focus on perishables.

One District One Product

• The Scheme adopts One District One Product (ODODP) approachto reap benefit of scale in terms of procurement of inputs, availing common services and marketing of products.
• The States would identify food product for a district keeping in view the existing clusters and availability of raw material.
• The ODOP product could be a perishable produce based product or cereal based products or a food product widely produced in a district and their allied sectors.
• Preference would be given to those producing ODOP products. However, units producing other products would also be supported.
• Support for common infrastructure and branding & marketing would be for ODOP products.