Lok Sabha Question No. 4511 (UNSTARRED), answered on 2026-03-19
Subject: Implementation of  PMFME Scheme
Ministry: FOOD PROCESSING INDUSTRIES
Asked by: Dr. Shashi Tharoor

## GOVERNMENT OF INDIA MINISTRY OF FOOD PROCESSING INDUSTRIES

## LOK SABHA UNSTARRED QUESTION No. 4511

ANSWERED ON 19 TH  MARCH, 2026

## IMPLEMENTATION OF PMFME SCHEME

## 4511.  DR. SHASHI THAROOR:

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

- (a) the current status of implementation of the Pradhan Mantri Formalisation of Micro Food Processing Enterprises (PMFME) scheme including the number of micro food processing units assisted so far under the credit-linked subsidy component;
- (b) whether the Government has reviewed the effectiveness of the PMFME scheme in ensuring sustainable  business  operations  post-formalisation  especially  the  number  of  units  that remain  operational  versus  those  that  have  become  non-operational  after  receiving assistance, if so, the details thereof;
- (c) whether the Government is aware of implementation bottlenecks in certain regions such as delays in obtaining mandatory environmental clearances which have led banks to withhold credit approvals and thereby stalled the launch of PMFME units, if so, the details thereof; and
- (d) the details of the policies planned to ensure that assisted micro food processing enterprises not only receive support but also remain viable and competitive in the long term?

## ANSWER

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

(a): Under the Pradhan Mantri Formalisation of Micro food processing Enterprises (PMFME) Scheme, the progress as on 31 st December 2025 including Credit Linked Subsidy component is as under:

-  Credit  Linked  Subsidy:  Loans  for  1,72,707  Micro  food  processing  enterprises sanctioned with approved subsidy of Rs. 5009.61 crore
-  Seed Capital: 3,76,326 Self Help Group members approved with amount of Rs. 1282.98 crore
-  Incubation Centre: 76 Incubation Centre approved with Grant in Aid of Rs. 208.11 crore
-  Capacity Building: 1,36,723 beneficiaries have been trained
-  Branding & Marketing: 27 proposals have been approved

(b): Ministry regularly reviews the implementation and outcomes of the Scheme  in coordination with the State Government. Ministry has got conducted Third Party Mid Term Impact Evaluation Study to assess the effectiveness and impact of the Scheme. As per the finding of the study as on 31st March 2025, the scheme has generated over 2.8 lakh employment opportunities, strengthened local branding and marketing initiatives, and  improved  market access for beneficiaries,  resulting  in  an  average  increase  in  turnover  of  about  1.7  times.  The  enterprises supported  under  the  scheme  undergo  physical  verification,  formalization  (Food  Safety  and Standards  Authority  of  India  (FSSAI),  Udyam  Aadhar,  and  Goods  and  Services  Tax  (GST) registration) and geo-tagging within the prescribed timeline. Regular monitoring is conducted by the banks for operational status of the units and that the loans remain standard.

(c): No such issues have been reported to the Ministry regarding delays in obtaining mandatory environmental clearances which have led banks to withhold credit approvals. However, the issues faced during the implementation of the scheme are addressed through handholding support by District Resource Persons (DRPs) and regular review meetings with States/UTs, lending banks, Department of Financial Services (DFS), State Level Bankers Committee (SLBC) meetings, and other concerned Ministries/ Departments, to ensure timely processing of applications and sanction of loans by lending banks.

(d): Under the scheme, the assisted micro food processing enterprises are provided handhold support for formalisation of the unit through registration under Udyam, FSSAI, and GST. The support is provided through District Resource Persons (DRPs) enabling enterprises to comply with regulatory requirements and access formal credit and organised markets.

Further,  scheme  provides  capacity  building  through  Entrepreneurship  Development Program (EDP) and product specific training to strengthen the managerial, technical and business capabilities  of  entrepreneurs.  The  Scheme  also  provides  Branding  and  Marketing  support  to facilitate development of common brands, improved packaging, quality standardisation and wider promotion of products.  In  addition,  the  Scheme  promotes  end-to-end  market  linkages  through buyer-seller meets, participation in fairs and exhibitions, and integration with organised retail and e-commerce platforms. Overall, the Scheme adopts a holistic policy framework that combines formalisation, skill development, branding, and market integration. These measures ensure that supported micro food processing enterprises not only receive financial assistance but also develop the  institutional  capacity,  market  presence,  and  operational  efficiency  required  for  long-term sustainability and competitiveness.

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