Pradhan Mantri Formalisation of Micro food processing Enterprises (PMFME) scheme

Pradhan Mantri Formalisation of Micro food processing Enterprises (PMFME) scheme

Subject: Government Schemes

Context: The Food Processing Ministry on Friday said that it is implementing a Centrally-sponsored scheme with an outlay of ₹10,000 crore to encourage setting up or upgradation of two lakh micro-food processing enterprises

Concept:

• Ministry of Food Processing Industry (MoFPI) has launched the Pradhan Mantri Formalisation of Micro food processing Enterprises (PMFME) scheme under the Aatmanirbhar Bharat Abhiyan with the aim to enhance the competitiveness of existing individual micro-enterprises in the unorganized segment of the food processing industry and promote formalization of the sector.
• The scheme to be implemented over a period of five years from 2020-21 to 2024-25 with a total outlay of Rupees 10,000 crore.
• The scheme has a special focus on supporting Groups engaged in Agri-food processing such as Farmer Producer Organizations (FPOs), Self Help Groups (SHGs) and Producers Cooperatives along their entire value chain.
• The PMFME scheme support in terms of:
• Food processing entrepreneurs through credit-linked capital subsidy @35% of the eligible project cost with a maximum ceiling of Rs.10 lakh per unit.
• Seed capital @ Rs. 40,000/- per SHG member for working capital and purchase of small tools.
• Credit linked grant of 35% for capital investment to FPOs/ SHGs/ producer cooperatives.
• Support for marketing & branding to micro-units.
• Support for common infrastructure and handholding support to SHGs, FPOs and Producer Cooperatives.
• Providing Capacity building and training support to increase the capabilities of the enterprises and upgradation of skills of workers.