PMFME Scheme 2024: Apply Online, PMFME Benefits, Subsidy

PMFME Scheme:-  The disorganized sector within the food processing industry requires improvements in the competitiveness of its individual micro-enterprises. Additionally, there is a pressing need for the formalization of this unorganized segment. The state and Central Government have collaboratively initiated the Pradhan Mantri Formalization of Micro Food Processing Enterprise (PMFME) Scheme to address these issues. Under this scheme, financial incentives will be extended to farmer-producer organizations, self-help groups, and producers’ cooperatives, as well as their respective value chains.

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This article furnishes comprehensive information about the scheme, covering aspects such as registration, login procedures, benefits, features, objectives, eligibility criteria, required documents, selection procedures, and more. If you intend to avail yourself of the benefits offered by the PM FME scheme, it is strongly recommended that you read this article attentively until the end.

PM FME Scheme

About PMFME Scheme 2024

The PMFME Scheme, a collaborative effort of the central government and various state governments, aims to encompass 200,000 micro-food processing units with credit-linked subsidies. This initiative seeks to formalize these micro units by facilitating GST, Udyog Aadhaar, and FSSAI registrations. Financial aid will be extended to individual units for the enhancement of their food processing facilities. Additionally, support for quality improvement, the establishment of common infrastructure facilities, and skill development will be provided through training and technical knowledge.

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The government has allocated a budget of 10,000 crores for a 5-year period, spanning from 2020-21 to 2024-25, for the implementation of this scheme. It also includes provisions for branding and marketing support. Farmer producer organizations, self-help groups, and producer cooperatives fall under the ambit of this scheme, with the Ministry of Food Processing Industries spearheading its implementation.

Objective Of the PMFME Scheme

The primary objective of the PMFME Scheme is to enhance access to credit for existing micro-food processing enterprises, Farmer Producer Organizations (FPOs), self-help groups, and cooperatives. This initiative aims to integrate the supply chain by reinforcing branding and marketing efforts, with support extended to 200,000 enterprises. The scheme also facilitates increased access to shared services such as common processing facilities, laboratories, storage, packaging, marketing, and incubation. Additionally, it promotes research and training in the food processing sector.

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To fortify institutions, the scheme offers heightened access to professional and technical support. An example of the scheme’s implementation is the organization of the ODOP Webinar on Potato Processing in Madhya Pradesh, conducted by @MOFPI_GOI, @phdchamber, and MP State Agro Industries Development Corporation, Government of Madhya Pradesh, under the #PMFMEScheme for the #AzadiKaAmritMahotsav initiative.

Details Of PM FME Scheme

Name Of The Scheme PM FME Scheme
Launched By Government Of India
Beneficiary Citizens Of India
Objective To Cover Micro Food Processing Unit With Credit Linked Subsidy
Official Website
Year 2024

Benefits and Features of the PM FME Scheme

The PMFME scheme, jointly launched by the central government and various state governments, encompasses several key benefits and features:

  1. Coverage of Micro Food Processing Units: The scheme aims to cover 2 lakh micro food processing units, providing them with credit-linked subsidies.

  2. Formalization of Micro Units: Micro units will undergo formalization through the scheme, involving GST, Udyog Aadhaar, and FSSAI registration processes.

  3. Inclusion of Farmer Producer Organizations (FPOs), Self-Help Groups, and Producers Cooperatives: The scheme extends its coverage to Farmer Producer Organizations, self-help groups, and producers’ cooperatives.

  4. Implementation Authority: The Ministry of Food Processing Industries is responsible for the effective implementation of this scheme.

  5. Financial Assistance for Upgradation: Individual units will receive financial assistance under the scheme to upgrade their food processing facilities.

  6. Quality Improvement: The scheme includes provisions for quality improvement initiatives.

  7. Common and Infrastructural Facilities: Support is provided for the establishment of common processing facilities, infrastructure, and skill development through training and technical knowledge.

  8. Budget Allocation: The government has allocated a budget of Rs 10,000 crore for a five-year period, spanning from 2020-21 to 2024-25.

  9. Branding and Marketing Support: The scheme offers support for branding and marketing activities, enhancing the visibility and market presence of the covered units.

Expenditure Occurred In Implementing PM FME Scheme

The PMFME Scheme entails a total expenditure of Rs 10,000 crore over a five-year period for its implementation. The distribution of implementation costs follows a specific ratio, with a 60:40 division between the Central and state governments, a 90:10 ratio with Northeastern and Himalayan States, a 60:40 ratio with union territories having a legislature, and 100% coverage by the Centre for other union territories. Launched as part of the Atma Nirbhar Bharat Abhiyan in 2020, the scheme adopts a one-district-one-product approach. Under this initiative, credit-linked subsidies, set at 35%, will be extended on eligible product costs, with a cap of Rs 10 lakh.

Registration Statistics Under PM FME Scheme

Total applications submitted 18278
Total ODOP applications submitted 12543
Total non-ODOP applications submitted 5724
New Individual application submitted 11754
Existing individual applications submitted 6524

Components Of PM FME Scheme

  • Assistance for individuals and groups of microenterprises, provision of branding and marketing support, support for institution strengthening, and establishment of a structured project management framework.

Support To Individual Micro Enterprise

In the PMFME scheme, the government intends to furnish credit-linked capital subsidies to individual microfood processing units, amounting to 35% of the eligible product cost. The maximum limit for this credit-linked capital subsidy is set at Rs 10 lakh per unit. Beneficiaries are obligated to contribute a minimum of 10% of the project cost, while the remaining amount can be obtained as a loan from the bank. The scheme also includes provisions for technical knowledge, skill training, and handholding support services to enhance the capacity of micro-food entrepreneurs.

Eligibility Criteria Of Individual Micro Enterprise

  • The enterprise must be actively involved in food processing activities.
  • It is required that the micro-enterprise is currently operational.
  • Only one individual per family is eligible to avail the benefits of this scheme.
  • The applicant must be 18 years of age or older and have at least an 8th-grade qualification.
  • Sole proprietorship or partnership firms are the only entities eligible for this scheme.
  • The applicant must hold ownership rights over the enterprise, which should be focused on producing the product identified in the “one district, one product” initiative of the district.
  • Other potentially viable units may also be considered.
  • The enterprise must be officially incorporated and have a minimum of 10 employees.
  • The project cost should exclude the cost of land, but expenses related to ready-built structures, long leases, or rental workspace can be included.
  • The lease rental for the workshed, included in the project cost, should be for a maximum period of 3 years.
  • The entrepreneur should be willing to contribute 10% of the project cost and secure the remaining funding through a bank loan.

Selection Procedure Of Individual Micro Enterprise

  • The selection process for individual micro-enterprises involves the identification of groups.
  • Preference will be given to enterprises engaged in the “one district, one product” initiative, while other enterprises with potential will also receive support through this scheme.
  • At the district level, applications will be solicited, and resource persons will conduct surveys of clusters.
  • These individuals will identify enterprises with the potential to benefit from the scheme.
  • For applications received directly, resource persons will conduct field verifications.
  • The applications will then be submitted to the district-level committee.
  • This committee will review the reports submitted by resource persons and interview interested candidates.
  • The report details will include the enterprise’s annual turnover, payment track record, existing infrastructure, backwards and forward linkages, proximity to clusters, and marketing linkages.
  • Cases recommended by the district-level committee will receive assistance from resource persons in preparing Detailed Project Reports (DPRs) to facilitate bank loan applications.
  • All necessary documents, along with the DPR, must be submitted to the bank for loan sanctioning.
  • The decision on finalizing support for individual micro-units will be made by the State Government.

Support To Group Category Under PM FME Scheme

The PMFME scheme extends support to clusters and groups, including farmer producer organizations, self-help groups, and producer cooperatives, along with their entire value chain. Assistance will be provided for activities such as sorting, grading, storage and processing, packaging, marketing, and processing of agricultural produce. A grant, amounting to 35% with credit linkage, will be made available for these purposes. Additionally, training support will be offered through the scheme, with the maximum limit of the grant specified as per the prescribed guidelines.

Eligibility Criteria Of Cooperative/FPOs

  • The cooperative or farmer-producer organization is ideally involved in the production of the “one district, one product” initiative.
  • Additionally, it must be engaged in food processing activities. The enterprise’s maximum turnover should be at least Rs 1 crore, and the project cost should not surpass the present turnover.
  • Members of the enterprise are required to possess the necessary knowledge and experience in dealing with the product for a minimum of three years.
  • Furthermore, the cooperative or farmer-producer organization must have adequate internal resources or receive sanction from the state government to cover 10% of the project cost and provide margin money for working capital needs.

Support to Help Groups Under the PMFME Scheme

Numerous self-help groups actively participate in food processing activities, and the PMFME scheme extends financial assistance to these groups. The particulars of this financial aid are outlined as follows:

  1. Seed Capital: A seed capital of Rs 40,000 per member of the self-help group will be provided for working capital requirements and tool purchases. Priority will be given to self-help groups engaged in the production of the “one district, one product” initiative. As not all members may be involved in food processing, the seed capital will be allocated at the federation level. This amount will be granted and must be extended as a loan to the self-help group members by the self-help group federation.

  2. Financial Support: Individual members of self-help groups will receive credit-linked grants at a rate of 35%, with a maximum amount of Rs 10 lakh under this scheme.

  3. Capital Investment: At the federation level of self-help groups, a credit-linked grant of 35% will be provided to support capital investment. The maximum limit of this grant will be specified periodically.

  4. Training and Handholding Support: Self-help groups will also benefit from training and handholding support. The State Rural Livelihood Mission has a considerable number of trained resource persons with expertise in agro-produce. These individuals will be utilized for training, unit upgrading, and providing handholding support.

Seed Capital Eligibility Criteria for Self-Help Groups in Food Processing

  • This scheme extends its benefits exclusively to self-help group members actively involved in food processing activities.
  • The allocated seed fund is designated for both working capital and the acquisition of small tools.
  • To qualify for the scheme, the self-help group must be actively engaged in food processing endeavours.
  • Before disbursing the seed fund, the self-help group federation is mandated to gather the following information for each member of the self-help group:
  1. Source of raw material and marketing strategy for the produce.
  2. Annual turnover of the self-help group.
  3. Details pertaining to the specific product being processed.
  4. Other activities are undertaken by the self-help group members.

Eligibility Criteria For Credit Linked Grant For Capital Investment For Self-Help Groups

  • Eligibility Criteria for Self-Help Groups in One District One Product Scheme
  • Individuals within the self-help group are required to possess a minimum of three years of experience in producing the designated “One District One Product” items. Furthermore, the self-help group is obligated to have adequate internal funds to cover 10% of the project cost and 20% as margin money.
  • To qualify for participation, the self-help group must be actively involved in food processing activities.

Support For Common Infrastructure Under PMFME Scheme

Under the PMFME scheme, assistance for shared infrastructure will be extended to self-help groups, cooperatives, farmer-producer organizations, private enterprises, or any government agency. Project eligibility will be determined based on factors such as the benefit to farmers and the industry at large, the viability gap, and the absence of private investment.

Support for common infrastructure through credit-linked grants will be available at a rate of 35%. The maximum limit for the grant will be determined periodically. Infrastructure support will cover facilities such as incubation centres, common processing facilities for processing “One District One Product” produce, warehouses, cold storage, and more.

Groups To Send Proposals For Common Infrastructure And Capital Investment

  • A Detailed Project Report (DPR) is necessary when seeking assistance.
  • The DPR should encompass essential details of the proposal, including the comprehensive cost breakdown, proposed manpower, turnover projections, marketing channels, and other pertinent information.
  • Submission of the DPR is required to the state nodal agency (SNA).
  • Once the project receives approval from the SNA, the proposal is forwarded to the Ministry of Food Processing Industries (MoFPI).
  • All proposals seeking assistance for a grant exceeding Rs 10 lakh must be submitted to the Ministry for approval.
  • Following approval, the proposal is then forwarded to the designated financial institution for the sanctioning of the loan. Additionally, for the preparation of the DPR, assistance amounting to Rs 50,000 will be provided.

Branding And Marketing Support Under PM FME Scheme

The PMFME scheme includes provisions for offering marketing and branding support to entities such as farmer producer organizations, self-help groups, cooperatives, and Special Purpose Vehicles (SPVs) of micro food processing enterprises. Support for marketing and branding will specifically target “One District One Product” produced at the state or regional level.

All training activities related to marketing will receive full funding under this scheme. Additionally, the initiative will extend assistance for the development of a common brand and packaging. Furthermore, the scheme aims to facilitate marketing tie-ups with both national and regional retail chains, as well as state-level institutions.

Eligibility Criteria For Marketing And Branding Support

  • The products and producers must have the potential for scalability to larger levels.
  • The proposal should demonstrate the management and entrepreneurial capabilities of the promoting entity.
  • Eligible applicants include Farmer Producer Organizations (FPOs), Self-Help Groups (SHGs), cooperatives, or regional state-level Special Purpose Vehicles (SPVs).
  • The enterprise must be actively involved in food processing activities, and the final product should be sold to customers in retail packaging.
  • The minimum turnover requirement for the product is Rs 5 crore. Additionally, the proposal should be linked to the concept of “One District One Product.”

Coverage Of State/Union Territory And Funding Pattern

  • This centrally sponsored scheme is designed for all of India, with an initial budget of Rs 10,000 crore to cover 2 lakh enterprises over a span of 5 years.
  • The expenditure incurred under this scheme will be shared in a 60:40 ratio between the Central and state governments.
  • However, for the North Eastern Himalayan states, the ratio will be 90:10 between the Central and state governments.
  • For union territories with legislatures, the expenditure-sharing ratio will be 60:40 between the state and Central governments.
  • In the case of other union territories, the central government will fund 100% of the expenses.
  • In the inaugural year (2020-21), whether the expenses are borne by the center or the state, the central government will cover them.
  • The expenditures made in the first year will be adjusted in the prescribed ratio mentioned above, and the funds will be transferred to the state in equal installments over the subsequent four years.
  • The allocation of funds to states will be based on the approved project implementation plan under this scheme.

One District One Product Approach

  • The implementation of this initiative will follow a “One District One Product” approach to leverage the advantages of scale, encompassing the procurement of inputs, utilization of common services, and marketing of the product.
  • Nevertheless, support will also be extended to units engaged in the production of other products.

Upgradation Of Food Processing Unit

  • Individual micro food processing units will receive credit-linked capital subsidy at a rate of 35% of the eligible project cost for expansion or technological upgrading, with a maximum ceiling of 10 lakh per unit.
  • The beneficiary is required to contribute a minimum of 10%, and the remaining amount can be obtained through a loan.
  • Applications for those interested in availing the benefits of the scheme will be invited at the district level on an ongoing basis.
  • Existing food processing units seeking assistance under the scheme should submit their applications through the designated portal.
  • After a thorough scrutiny process, the loan proposals will be recommended to the banks.
  • The states will determine the appropriate level of shortlisting for applications to be recommended to the banks.

Procedure To Apply For Assistance Under Branding And Marketing

  • The preparation of a Detailed Project Report (DPR) is mandatory for the proposal, encompassing vital project details such as product specifics, strategy, quality control measures, aggregation of produce, common packaging, branding, etc.
  • The State Nodal Agency (SNA) will provide support of up to Rs 500,000 for the preparation of the DPR.
  • Additionally, the proposal must include a flow chart depicting the sequence of activities related to the project.

Support To State Level Technical Institution

The state government will nominate state-level technical institutions for participation in the PM FME Scheme. These institutions will assume responsibility for various aspects, including preparing the Project Implementation Plan (PIP) for state-level technical initiatives, offering insights for the PIP, conducting capacity-building training for district resource persons, contributing to branding and marketing plans, and providing mentoring support to district resource persons.

The PIP should encompass an annual training calendar for the proposed activities, and once approved by the state-level approval committee, it will be submitted to the ministry for consideration.

Eligibility Criteria Of State-Level Technical Institution

Eligible institutions for participation in the scheme include:

  • A state-owned food processing technology research institution.
  • A college or institute affiliated with a State Agriculture University or any other university.
  • An institute under CSIR (Council of Scientific and Industrial Research) or any Government of India institute with a focus on food processing.
  • For colleges, it is essential to offer undergraduate or postgraduate courses in food processing technology.
  • Additionally, the institute must be equipped with a laboratory containing the necessary equipment.
  • Faculty at the institute should be engaged in research work and product development.
  • To be considered, a proposal must be recommended by the State Government.
  • The institute should possess sufficient built-up space, and it is imperative to have pilot plants capable of processing two products under the “One District One Product” initiative.

Training Support Under PMFME Scheme

  • The PMFME scheme encompasses training support for both individual units and groups receiving capital investment assistance.
  • Additionally, existing units and groups within the district engaged in the production of “One District One Product” will also receive training support.
  • Furthermore, groups benefitting from marketing and branding support will be included in the training program.
  • The Ministry of Skill Development and Entrepreneurship has established a fixed per-hour rate for training expenses.
  • The training will be conducted through online modules, featuring short-duration sessions.
  • These modules will be delivered on a weekly basis, supported by audio-visual aids within the district.

Procedure With Bank For Grant

  • A nodal bank will be designated for the national-level disbursement of subsidies.
  • The bank responsible for loan sanctioning must establish a mirror account in the name of the beneficiary.
  • The grant, provided by the Central and state governments in a 60:40 ratio, will be deposited into the beneficiary’s bank account at the lending bank branch by both the state and Central Governments.
  • If, after a period of three years from the disbursement of the last tranche of the loan, the beneficiary’s account remains in good standing and the unit demonstrates professionalism, the corresponding amount will be adjusted in the beneficiary’s bank account.

Entities involved in the Implementation and Monitoring Mechanism include:

  1. Committee on Capacity Building and Research
  2. National Apex Institutions
  3. State-Level Technical Institution
  4. Inter-Ministerial Committee
  5. Project Executive Committee
  6. State-Level Approval Committee
  7. The State Nodal Department
  8. State Nodal Department Agency
  9. District Level Committee
  10. National Program Management Unit
  11. State Program Management Unit
  12. Resource Persons

Documents necessary for applying under the PM FME Scheme:

  1. Aadhar card
  2. Residence proof
  3. Incorporation certificate
  4. Bank account details
  5. Age proof
  6. Passport-sized photograph
  7. Mobile number

How To Apply Under PM FME Scheme

PM FME Scheme

  •  Navigate to the homepage.
  • Click on the “Online Registration” option.

PM FME Scheme

  • A new page will be presented to you.
  • On this fresh page, proceed by clicking on “Sign Up.

Sign up

  • The registration form will appear before you
  • You have to fill in the following information in this registration form:-
    • Type of beneficiary
    • Name
    • Email ID
    • Mobile number
    • Address
    • State
    • District
  • Now you have to click on the register
  • After that, you have to log in on the portal

Login Fom

  1. Follow these steps to apply under the PM FME Scheme:
  2. Select the beneficiary type.
  3. Enter your user ID and password.
  4. Click on “Submit.”
  5. Click on “Apply Now.”
  6. The application form will be displayed.
  7. Enter all the required details in the application form.
  8. Upload all the necessary documents.
  9. Click on “Submit.”
  10. By following this procedure, you can successfully apply under the PM FME Scheme.

Procedure To Do Applicant Login

  • Visit the official website of the PM FME scheme.
  • Once on the homepage, click on the “Login” option.
  • Following this, click on “Applicant Login.

 Applicant Login

  • The login page will be displayed.
  • Choose your beneficiary type, enter your user ID and password, and then click on “Submit.
  • Following this procedure will allow you to log in as an applicant.

Procedure To Do MIS Login

  • Go to the official website of the PM FME scheme.
  • Once on the homepage, click on “Login.
  • Following that, click on “MIS Login.


  • Enter your user ID and password, then click on “Submit.
  • This process will enable you to perform MIS Login.

Some Important Information Regarding PM FME Scheme

  • The district resource person (DRP) in the district will assist micro-enterprises in preparing the Detailed Project Report (DPR), securing a bank loan, receiving training, upgrading their units, obtaining necessary regulatory approvals, ensuring hygiene standards, and more.
  • Information about the DRP can be found on the official website.
  • For official matters, beneficiaries can meet with the DRP at the District Industries Centre.
  • In the absence of a DRP, the beneficiary can contact the District Nodal Officer.
  • The following enterprises are eligible to register for common infrastructure:
  • Cooperative Society
  • Farmer Producer Company (FPC)
  • Self-Help Group (SHG)
  • Limited Liability Partnership
  • Partnership Firm
  • Private Limited Company
  • Proprietorship
  • Public Limited Company
  • To avail of the scheme’s benefits, the applicant should have existing infrastructure.
  • State-level technical institutions will provide training under this scheme. Beneficiaries are required to make timely EMI payments for the next three years.
  • If the loan category is standard after three years, the subsidy amount will be credited to the beneficiary’s bank account.
  • Special allocations will be made for Scheduled Castes, Scheduled Tribes, and the North Eastern region.
  • At the national level, a nodal bank will be appointed for the disbursement of subsidies.

Contact Details

  • Address-Panchsheel Bhawan, August Kranti Marg, Khelgaon, New Delhi-110049
  • Phone: 011-26406500,  +91 1302281089 , +91-8168001500

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