Lok Sabha Question No. 3256 (UNSTARRED), answered on 2025-03-20
Subject: Status of PMFME Scheme
Ministry: FOOD PROCESSING INDUSTRIES
Asked by: Shri Maddila Gurumoorthy

## GOVERNMENT OF INDIA MINISTRY OF FOOD PROCESSING INDUSTRIES

## LOK SABHA

## UNSTARRED QUESTION No. 3256 TO BE ANSWERED ON 20 TH  MARCH, 2025

## STATUS OF PMFME SCHEME

## 3256.   SHRI MADDILA GURUMOORTHY:

Will the Minister of FOOD PROCESSING INDUSTRIES be pleased to state:

- (a) the  status  of  the  implementation  of  the  Pradhan  Mantri  Formalisation  of  Micro  Food Processing  Enterprises  (PMFMEs)  scheme  in  the Tirupati  Parliamentary  Constituency including the number of beneficiaries assisted under the scheme;
- (b) the steps taken/being taken to promote and encourage micro food processing enterprises in the Tirupati region particularly among women and marginalized communities;
- (c) whether the Government has encountered any challenges in the rollout of the scheme in Tirupati, if so, the details thereof along with the measures taken/being taken to address these challenges to ensure better outreach and support to micro food processing units;
- (d) the details of the financial assistance, training and infrastructure support provided to the beneficiaries under the scheme in Tirupati; and
- (e) whether any future initiatives are being planned to further boost the growth of the food processing sector in the region and if so, the details thereof?

## ANSWER

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

(a) & (b): To promote and encourage micro food processing enterprises in the country including Tirupati region of  Andhra  Pradesh,  Ministry of  Food  Processing  Industries  (MoFPI)  is implementing  Centrally  Sponsored  "Pradhan  Mantri  Formalisation  of  Micro  Food  Processing Enterprises (PMFME) Scheme" for providing financial, technical and business support for setting up / up-gradation of micro food processing enterprises. The scheme is operational from 2020-21 to 2025-26 with an outlay of Rs. 10,000 Crore. The scheme aims 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 is not region or state specific but demand  driven.  The  status  of  implementation  of  the  scheme  in  the  Tirupati  Parliamentary Constituency including the number of beneficiaries assisted  under the PMFME Scheme are at Annexure-I .

(c): No Sir. However, in order to promote the PMFME Scheme, several promotional campaigns and activities are conducted to create awareness in general public through National & State level awareness  campaigns  such  as  Newspaper  advertisement,  Radio  Jingles,  Exhibitions  &  Expos, Millet Fairs, Buyer-Seller Meets, district and block level workshops etc.

(d): The details of financial assistance available to micro food processing enterprises in the country including Tirupati under PMFME Scheme are at Annexure-II .

(e): In  order  to  promote  food  processing  sector  in  the  country,  Ministry  of  Food  Processing Industries  (MoFPI)  has  been  incentivizing  setting  up/expansion  of  food  processing  units  and related infrastructure through its Central Sector Scheme Pradhan Mantri Kisan SAMPADA Yojana (PMKSY), Production  Linked  Incentive  Scheme  for  Food  Processing  Industry  (PLISFPI)  and Centrally Sponsored PM Formalization of Micro Food Processing Enterprises (PMFME) Scheme. These schemes are not region or state specific but demand driven. These schemes aim to create modern infrastructure with efficient supply chain management from farm gate to retail outlet and thereby  helping  in  providing  better  returns  to  farmers,  creating  employment  opportunities, reducing wastage of agricultural produce, increasing the processing level and enhancing the export of the processed foods.

The organizations such as Central & State PSUs/ Joint Ventures/ Farmer Producers Organization (FPOs)/ NGOs/ Cooperatives/ SHG's/ Pvt. Ltd. Companies/ Individuals proprietorship firms etc. are eligible for availing financial support / incentive under these schemes.

Ministry extends financial support to prospective entrepreneurs for setting up of different kinds of food processing units as per respective scheme guidelines.

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## ANNEXURE REFERRED TO IN REPLY TO PART (a)  & (b) OF THE LOK SABHA UNSTARRED  QUESTION  NO.  3256  FOR  ANSWER  ON  20.03.2025  REGARDING 'STATUS OF PMFME SCHEME'

## Status of implementation of PMFME Scheme in the Tirupati Parliamentary Constituency as on 28.02.2025

|   S.No. | Component                        | Status                                                                                             |
|---------|----------------------------------|----------------------------------------------------------------------------------------------------|
|       1 | Credit Linked subsidy sanctioned | 248 loans sanctioned with amount of Rs. 8.09 Cr. including 38 SC, 7 ST and 193 women beneficiaries |
|       2 | Seed Capital sanctioned          | 1959 SHG members sanctioned with amount of Rs. 7.53 Cr.                                            |
|       3 | Incubation Centre approved       | 1 proposal at Indian Institute of Technology -Tirupati approved with grant in aid of Rs. 2.60 Cr.  |
|       4 | Capacity Building                | 190 beneficiaries trained                                                                          |

## ANNEXURE  REFERRED  TO  IN  REPLY  TO  PART  (d)  OF  THE  LOK  SABHA UNSTARRED  QUESTION  NO.  3256  FOR  ANSWER  ON  20.03.2025  REGARDING 'STATUS OF PMFME SCHEME'

The details of financial assistance offered to the enterprises under Pradhan Mantri Formalisation of Micro Food Processing Enterprises (PMFME) Scheme are as under:

- (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 Food Processing and Entrepreneurship  Development  program  modified  to  meet  the  requirement  of  food processing industry and product specific skilling.

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