Pradhan Mantri Formalisation of Micro Food Processing Enterprises (PMFME)

Brief
It is a centrally sponsored initiative launched under the Aatmanirbhar Bharat Abhiyan in June 2020. It aims to formalise and strengthen the unorganised micro food processing sector by providing financial, technical, and business support.

Objectives
- Transitioning 2,00,000 unorganised units into the formal framework
- Enhancing the capacity of existing individual micro-enterprises
- Increasing access to institutional credit for entrepreneurs, Farmer Producer Organisations (FPOs), and Self-Help Groups (SHGs)
- Strengthening branding and marketing to integrate units with organized supply chains, primarily through the One District One Product (ODOP) approachs.

Eligibility Criteria
- Individuals: Existing micro food processing units, individual entrepreneurs, and proprietorship or partnership firms
- Groups: FPOs, SHGs, NGOs, cooperatives, and Private Limited Companies
- Age & Education: Applicants must be above 18 years old and possess at least an VIII standard pass educational qualification
- Employment: The enterprise must be unincorporated and employ less than 10 workers
- One per Family: Only one person from a family (self, spouse, and children) is eligible

Benefits
- Capital Subsidy: Credit-linked capital subsidy of 35% of eligible project cost, with a maximum ceiling of ₹10 lakhs per unit
- Seed Capital: Seed capital of ₹40,000 per SHG member for working capital and small tools
- Common Infrastructure: Groups (FPOs/SHGs/Cooperatives) can receive a 35% subsidy up to ₹3 crores for shared facilities like cold storage or labs
- Branding & Marketing: Up to 50% grant for branding and marketing expenses
- Training: Capacity building through skill training and technical knowledge transfer

Nodal Department
Ministry of Food Processing Industries (MoFPI)