Lok Sabha Question No. 1399 (UNSTARRED), answered on 2022-07-26
Subject: Allocation of Funds under PMFME
Ministry: FOOD PROCESSING INDUSTRIES
Asked by: V. Kalanidhi

## GOVERNMENT OF INDIA MINISTRY OF FOOD PROCESSING INDUSTRIES

## LOK SABHA UNSTARRED QUESTION No. 1399

ANSWERED ON 26 TH  JULY, 2022

## ALLOCATION OF FUNDS UNDER PMFME

## 1399.  DR. KALANIDHI VEERASWAMY:

Will the MINISTER OF FOOD PROCESSING INDUSTRIES be pleased to state:

- (a) the salient features of the Pradhan Mantri Formalisation of Micro Food Processing Enterprises (PMFME) Scheme;
- (b) the details of the funds sanctioned, allocated and utilized under this scheme particularly in Tamil Nadu during the last three years and the current year;
- (c) the details of the targets set and achievements made so far;
- (d) whether the Government has signed an agreement under this scheme; and
- (e) if so, the details thereof?

## ANSWER

## THE MINISTER OF STATE FOR FOOD PROCESSING INDUSTRIES (SHRI PRAHLAD SINGH PATEL)

- (a): As  part  of  Atmanirbhar  Bharat  Abhiyan,  Ministry  of  Food  Processing  Industries (MoFPI) is implementing a centrally sponsored "PM Formalisation of Micro food processing Enterprises  (PMFME)  Scheme"  for  providing  financial,  technical  and  business  support  for setting up / upgradation of micro food processing enterprises in the country. The scheme is operational for a period of five years from 2020-21 to 2024-25 with an outlay of Rs. 10,000 Crore. Scheme primarily adopts 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.  It  provides  the  framework  for  value  chain  development  and  alignment  of  support infrastructure. The details of assistance available to Micro Food Processing Enterprises under PMFME Scheme:
- (i) Support  to  Individual  /  Group  Category  Micro  Enterprises: Credit-linked  capital subsidy @35% of the eligible project cost, maximum ceiling Rs.10 lakh per unit;
- (ii) Support to SHGs for seed capital: Seed capital @ Rs. 40,000/- per member of SHG engaged in food processing for working capital and purchase of small tools subject to maximum of Rs. 4 lakh per SHG Federation.
- (iii) Support for Common Infrastructure: Credit linked capital subsidy @35% subject to maximum of Rs. 3 crore to support FPOs, SHGs, Cooperatives and any Government agency for setting up of common infrastructure. The common infrastructure will also be available for other units and public to utilize on hiring basis for substantial part of the capacity.
- (iv) Branding and Marketing Support: Grant  upto  50%  for  Branding  and  Marketing  to groups of FPOs/ SHGs/ Cooperatives or an SPV of micro food processing enterprises.
- (v) Capacity Building: The scheme envisages training for Entrepreneurship Development Skilling (EDP+): program modified to meet the requirement of food processing industry and product specific skilling.

(b): A total amount of Rs. 15.43 crores have been released under the PMFME scheme as Centre share during Financial Year 2020-21 and 2021-22 out of which Rs. 7.68 crores have been utilised by the State of Tamil Nadu till 31.03.2022. No fund has been released during Financial Year 2022-23 till date.

(c): Against the targets of supporting 2 lakh micro food processing enterprises under the PMFME scheme, 4974 loans have been sanctioned for providing credit linked subsidy and seed capital has been released to 71733 SHG members till date.

(d)  &  (e):  MoFPI  has  signed  Memorandum  of  Understanding  (MoU)/Joint  Letters  with Institutions namely Indian Council for Agriculture Research (ICAR), Department of Animal Husbandry and Dairying (DAHD), Food Safety and Standards Authority of India (FSSAI), Ministry of Rural Development (MoRD), Ministry of Housing and Urban Affairs (MoHUA), Ministry of Tribal Affairs, National Cooperative Development Corporation (NCDC), National Scheduled Tribes Finance and Development Corporation (NSTFDC) and National Schedule Finance Development Corporation (NSFDC) for convergence of PMFME with other schemes, identification  &  handholding  of  beneficiaries,  support  in  capacity  building,  marketing  & branding and increasing outreach of scheme.

*****