Lok Sabha Question No. 21 (UNSTARRED), answered on 2026-01-29
Subject: Support to Micro and Small Food Processing Enterprises under PMFME
Ministry: FOOD PROCESSING INDUSTRIES
Asked by: Dr. D. Purandeswari, Shri Mukeshkumar Chandrakaant Dalal, Dr. Lata Wankhede, Shri Atul Garg

## GOVERNMENT OF INDIA

## MINISTRY OF FOOD PROCESSING INDUSTRIES LOK SABHA UNSTARRED QUESTION No. 21 ANSWERED ON 29 TH  FEBRUARY, 2026

## SUPPORT TO MICRO AND SMALL FOOD PROCESSING ENTERPRISES UNDER PMFME

## 21.

## SHRI MUKESHKUMAR CHANDRAKAANT DALAL: DR. LATA WANKHEDE: SHRI ATUL GARG: DR. D. PURANDESWARI:

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

- (a) whether the Government has implemented measures to support Micro and Small Food Processing Enterprises under the Pradhan Mantri Formalisation of Micro Food Processing Enterprises (PMFME) Scheme, if so, the details thereof and if not, the reasons therefor;
- (b) the  steps  taken  by  the  Government  to  provide  handholding  support,  training  and preparation of project reports to facilitate bank financing and scheme uptake;
- (c) whether common facility centres, incubation support and technical assistance have been expanded to improve operational capacity, if so, the details thereof and if not, the reasons therefor;
- (d) the initiatives adopted by the Government to strengthen market access, quality compliance and branding for small food processors; and
- (e) the  manner  in  which  these  efforts  are  expected  to  formalise  food  micro-enterprises, increase rural employment and enhance entrepreneurship opportunities?

## ANSWER

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

(a): 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 of new/ upgradation of micro food processing enterprises in the country. The details of financial assistance eligible for micro food processing enterprises under the Scheme are at Annexure.

(b): To support the beneficiaries, handholding support is provided by District Resource Person (DRPs)  to  micro  enterprises  in  preparing  Detailed  Project  Reports  (DPRs),  securing  bank  loans, providing  training,  upgradation  of  the  units,  obtaining  necessary  regulatory  approvals,  ensuring hygiene  standards  etc.  Further,  formalization  of  units  is  facilitated  through  Udyam  Aadhaar registration, Food Safety & Standards Authority of India (FSSAI) registration, Goods & Services Tax (GST) registration as per the applicability.

The Capacity Building component of the  PMFME  Scheme  envisages Food Processing Entrepreneurship Development Program Training for all applicants viz individuals and Groups (Self Help Groups (SHGs)/ Famers Producer Organisations (FPOs)/ Cooperatives) for availing credit linked grant recommended by District Level Committee (DLC) and also training to SHG beneficiaries of Seed Capital engaged in micro food processing.

(c): Support for Common Facility Centres (CFCs) and incubation centres has been provided under the PMFME Scheme to improve operational capacity of micro food processing enterprises. These facilities  offer  high-end  processing,  testing,  storage,  packaging  and  training  infrastructure  for demonstration, as well as access to technical assistance, product development and quality testing. This shared  infrastructure  reduces  capital  costs  and  improves  access  to  modern  technology  for  micro entrepreneurs.

(d): The scheme provides Branding and Marketing support to help beneficiaries for market access to  boost  the  visibility  and  sales  of  their  products.  This  is  achieved  through  strategic  tie-ups  with regional and national retail chains. For this, Memorandum of Understanding (MoU) with Government e-Marketplace (GeM) portal has been done on 14 th November, 2024 to facilitate marketing of products manufactured by the units supported under PMFME Scheme.

The marketing efforts focus on positioning products under the common brand to stand out from competitors. The brand's Unique Selling Proposition (USP) is built around standardization, quality, and premium packaging. To ensure consistency in taste and quality under the scheme, the approved brands under the scheme, adhere to product development, quality assurance, ingredient standards, packaging, and labelling in compliance with FSSAI regulations.

(e): The scheme provides support of credit-linked grant of 35% of the eligible project cost, seed capital  of  up  to  Rs.  40,000,  capacity  building  for  beneficiaries,  and  handholding  support  for  the formalization  of  units.  Formalization  of  units  is  facilitated  through  Udyam  Aadhaar  registration, FSSAI registration, GST registration as per the applicability by handholding support by DRPs. The Scheme contributes to  rural  employment  generation  by  strengthening  local  food  processing  value chains, promoting value addition to agricultural produce, supporting upgradation and establishment of new micro units, thereby creating direct and indirect employment opportunities, particularly in rural and semi-urban areas.

Further, by providing capacity building, technical handholding, incubation support, branding and market linkages under the PMFME scheme encourages entrepreneurship opportunities.

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## ANNEXURE  REFERRED  TO  IN  REPLY  TO  PART  (a)  OF  THE  LOK  SABHA UNSTARRED  QUESTION  NO.  21  FOR  ANSWER  ON  29.01.2026  REGARDING 'SUPPORT TO MICRO AND SMALL FOOD PROCESSING ENTERPRISES UNDER PMFME'

The details of financial assistance available 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  Special  Purpose  Vehicle  (SPV)  of  micro  food processing enterprises.

(v). Capacity Building: The scheme envisages training for Entrepreneurship Development Program (EDP) modified to meet the requirement of food processing industry and product specific skilling.

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