Lok Sabha Question No. 628 (UNSTARRED), answered on 2025-02-06
Subject: Status of PMFME
Ministry: FOOD PROCESSING INDUSTRIES
Asked by: Shri Sudhakar Singh

## GOVERNMENT OF INDIA MINISTRY OF FOOD PROCESSING INDUSTRIES

## LOK SABHA

## UNSTARRED QUESTION No. 628 ANSWERED ON 06 TH  FEBRUARY, 2025

## STATUS OF PMFME

## 628. SHRI SUDHAKAR SINGH:

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

- (a) the current status of the Pradhan Mantri Formalisation of Micro Food Processing Enterprises (PMFME) Scheme and the number of enterprises that have been supported under the said scheme across the country;
- (b) the  details  of  the  funds  allocated  and  utilized  along  with  the  number  of  micro  food processing units formalized in Bihar, particularly in the districts of South Bihar like Buxar and Kaimur;
- (c) the details of the specific initiatives taken/ being undertaken by the Government to promote the establishment and growth of micro food processing enterprises in South Bihar, where there is significant potential for agro-based industries; and
- (d) the manner in which the Government is addressing the challenges faced by the entrepreneurs in accessing financial assistance and capacity-building support under the said Scheme in these regions?

## ANSWER

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

- (a) The status of implementation of Pradhan Mantri Formalisation of Micro Food Processing Enterprises (PMFME) Scheme across the country as on 31 st January 2025 is at Annexure-I .
- (b) Central Share of Rs. 212.89 crores has been released as on 31 st January 2025 to State of Bihar for implementation of various components of the PMFME Scheme. A total number of 20,297 applications have been sanctioned for credit linked subsidy support under the Scheme. Out of which, 3,674 micro food processing units have been formalized in the State including 123 and 33 in the Districts of Buxar and Kaimur respectively.
- (c) 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  upgradation  of  micro  food  processing enterprises in the country. 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 details of financial assistance offered to the prospective entrepreneurs under PMFME Scheme are at Annexure-II .

(d) District Resource Person (DRPs) have been appointed by the State / UT Governments to provide handholding support to beneficiaries / entrepreneurs for accessing the financial assistance under the PMFME Scheme. DRPs facilitate the beneficiaries in preparing Detailed Project Reports (DPRs), securing bank loans, providing training, upgradation of the units, obtaining necessary regulatory approvals, ensuring hygiene standards etc. The Capacity Building component of the PMFME  Scheme envisages providing Food Processing Entrepreneurship Development Programmes  (EDP)  Training  for  all  applicants  viz  individuals  and  Groups  (SHGs/  FPOs/ Cooperatives) recommended for availing credit linked subsidy by District Level Committee (DLC) and Food Processing Orientation training to Self Help Group (SHG) beneficiaries of Seed Capital under PMFME scheme engaged in micro food processing activities.

*****

## ANNEXURE  REFERRED  TO  IN  REPLY  TO  PART  (a)  OF  THE  LOK  SABHA UNSTARRED QUESTION NO. 628 FOR ANSWER ON 06.02.2025 REGARDING 'STATUS OF PMFME'

## The details of the progress made under PMFME Scheme is as under (till 31st January 2025)

- i) Credit Linked Subsidy: 1,22,512 loans have been sanctioned and 96,998 loans disbursed.
2. ii) Seed  capital: Amount of Rs.  1042.07  Cr.  has  been  sanctioned  for 3,13,218  Self-Help Group (SHG) members.
3. iii) Capacity  Building: 672  Master  Trainers,  1132  District  Level  Trainers  and 92,677 Beneficiaries have been trained under the scheme
4. iv) Incubation Centre: 76 Incubation Centers approved with grant in aid of Rs. 206.94 Cr. Out of this, 16 Incubation Centres commissioned.
- v) Marketing & Branding: Overall 17 brands have been launched under the scheme. 15 State  proposals  for  marketing  &  branding  have  been  approved  which  include  Aasna (Punjab),  Bhimthadi  (Maharashtra),  Seemi  (Karnataka),  Bhima  Pulses  (Karnataka), Madugula Halwa (Andhra Pradesh), Aamodam (Andhra Pradesh), Jeevika (Bihar), Umed (Maharashtra),  Temi  Tea  (Sikkim),  Pudhugai  (Tamil  Nadu)  and  Neithal  (Puducherry), India Coffee (Karnataka), Just Pure (Haryana), Govan (Goa), Sikkim Supreme (Sikkim). 2 National tie-up with NAFED done.

*****

## ANNEXURE  REFERRED  TO  IN  REPLY  TO  PART  (c)  OF  THE  LOK  SABHA UNSTARRED  QUESTION  NO.  628  FOR  ANSWER  ON  06.02.2025  REGARDING 'STATUS OF PMFME'

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.

*****