Lok Sabha Question No. 823 (UNSTARRED), answered on 2025-12-04
Subject: Implementation of PMFME
Ministry: FOOD PROCESSING INDUSTRIES
Asked by: Dr. Lata Wankhede, Dr. D. Purandeswari, Shri Atul Garg, Shri Rajesh Verma, Smt. Shambhavi

## GOVERNMENT OF INDIA MINISTRY OF FOOD PROCESSING INDUSTRIES

## LOK SABHA UNSTARRED QUESTION No. 823

ANSWERED ON 04 TH  DECEMBER, 2025

## IMPLEMENTATION OF PMFME

## 823. DR. LATA WANKHEDE:

DR. D. PURANDESWARI:

SHRI ATUL GARG:

SHRI RAJESH VERMA:

SMT. SHAMBHAVI:

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

- (a) whether the Government is implementing the Pradhan Mantri Formalization of Micro Food Processing Enterprises (PMFME) scheme to support unorganized micro units and if so, the details thereof;
- (b) the assistance provided for credit, training, branding, and marketing under the scheme;
- (c) the  number  of  Self  Help  Groups  (SHGs),  Farmer  Producer  Organisations  (FPOs)  and micro-entrepreneurs benefitted across the country;
- (d) whether the scheme promotes local food traditions, GI-tagged products and One District One Product (ODOP) model and if so, the details thereof; and
- (e) the manner in which PMFME contributes to rural employment, food security and value chain strengthening in the food processing sector?

## ANSWER

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

- (a) & (b). 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 scheme aims to enhance the competitiveness of micro-enterprises in the unorganized segment of the food processing industry and promote formalization of the sector. The details of financial assistance available to Micro Food Processing Enterprises under PMFME Scheme are at Annexure .
- (c). Under the PMFME Scheme, loans for credit linked subsidy have been sanctioned to 1363 Self Help  Groups  (SHGs),  236  Farmer  Producer  Organisations  (FPOs)  and  1,61,072  micro  food processing enterprises till 31 st October 2025.
- (d). To promote Vocal for Local Initiative in food processing sector, the PMFME Scheme primarily adopts  One  District  One  Product  (ODOP)  approach  aimed  at  fostering  balanced  regional development across all districts of the country. The initiative aims to select, brand, and promote at least One Product from each District (One District One Product) of the country for enabling holistic socioeconomic growth across all regions. Under the ODOP initiative, all products have been selected by States/UTs by taking into consideration the existing ecosystem on the ground, products identified under Districts. ODOP have been approved for 726 Districts across 35 States/ UTs under the Scheme including GI-tagged products.

(e). The PMFME Scheme serves as a key catalyst for rural economic growth, food security, and value  chain  strengthening  by  expanding  and  formalising  micro-enterprises,  generating  local employment,  particularly through FPOs,  SHGs,  and  common  infrastructure,  and  fostering entrepreneurship. It improves food security by reducing post-harvest losses, enhancing processing efficiency,  extending  shelf  life  of  ODOP  and  other  agri-food  products,  and  ensuring  year-round availability of safe, nutritious food. The scheme also strengthens value chains by promoting districtspecific ODOP interventions, supporting technology adoption through credit and capacity building, creating shared infrastructure for efficient aggregation and processing, and enabling better market integration through linkages with e-commerce, retail, and institutional buyers.

*****

## ANNEXURE REFERRED TO IN REPLY TO PART (a) & (b) OF THE LOK SABHA UNSTARRED  QUESTION  NO.  823  FOR  ANSWER  ON  04.12.2025  REGARDING 'IMPLEMENTATION OF 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 an 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.