Lok Sabha Question No. 4549 (UNSTARRED), answered on 2026-03-19
Subject: Micro Food Processing Enterprises under PMFME Scheme
Ministry: FOOD PROCESSING INDUSTRIES
Asked by: Shri Rajeev Rai

## GOVERNMENT OF INDIA

## MINISTRY OF FOOD PROCESSING INDUSTRIES LOK SABHA UNSTARRED QUESTION No. 4549 ANSWERED ON 19 TH  MARCH, 2026

## MICRO FOOD PROCESSING ENTERPRISES UNDER PMFME SCHEME

## 4549.   SHRI RAJEEV RAI:

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

- (a) the number of micro food processing enterprises in Mau district supported under the PM Formalisation of Micro Food Processing Enterprises (PMFME) scheme during 2024-26 along with loans sanctioned and subsidies disbursed for the purpose;
- (b) whether any agro-processing clusters or One District One Product (ODOP) units have been supported in the said district, if so, the details thereof;
- (c) whether any projects under cold chain components of the Pradhan Mantri Kisan Sampada Yojana (PMKSY) have been approved in Mau district during the said period and if so, the details thereof;
- (d) whether any evaluation has identified skill or credit gaps affecting PMFME beneficiaries in the said district and if so, the details thereof; and
- (e) the steps taken by the Government to strengthen value addition, market linkage and export potential of food processing units in Ghosi in Mau district of Uttar Pradesh?

## ANSWER

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

(a): Under the Pradhan Mantri Formalisation of Micro food processing Enterprises Scheme, loans  for  218  Micro  food  processing  enterprises  in  Mau  district  of  Uttar  Pradesh  have  been sanctioned during FY 2024-25 & FY 2025-26 with approved subsidy of Rs. 9.72 crore.

(b): Under  the  PMFME  Scheme,  loans  for  two  Micro  food  processing  Scheme  have  been sanctioned under One District One Product (ODOP) in Mau District of Uttar Pradesh. However, no projects have been sanctioned under the Agro Processing Cluster Scheme of Pradhan Mantri Kisan Sampada Yojana.

(c): No projects under cold chain components of the Pradhan Mantri Kisan Sampada Yojana have been approved in Mau district, during the FY 2024-25 & FY 2025-26.

(d): Ministry  has  got  conducted  the  Third  Party  Mid  Term  Impact  Evaluation  Study  for PMFME Scheme during FY 2024-25. The  evaluation  has  highlighted  opportunities  to  further strengthen micro food processing enterprises through enhanced skill development and improved access  to  credit.  Ministry  is  addressing  these  gaps  through  capacity  building  and  training programmes,  handholding  support  by  District  Resource  Persons  (DRPs),  facilitation  of  credit linkage with banks under the Credit Linked Subsidy component, and strengthening of incubation and  common  infrastructure  facilities  under  the  Scheme.  These  interventions  are  aimed  at improving the skills of entrepreneurs and enhancing their access to formal credit, including in districts such as Mau in Uttar Pradesh.

(e): Under the PMFME Scheme, support to upgrade existing units or setting up of new micro food processing enterprises is provided through a credit linked grant @ 35% with maximum grant of Rs.10 lakh across the country including Ghosi of Uttar Pradesh. The Scheme also provides support to food processing units of SHGs/ FPOs/ Cooperatives for Common Infrastructure @35% credit-linked  subsidy,  Seed  Capital  to  SHGs,  Incubation  Centre,  Branding  &  Marketing  and Capacity Building.

The details of financial assistance available to Micro Food Processing Enterprises across the country including Ghosi in Uttar Pradesh under PMFME Scheme are at Annexure .

In addition to this, Ministry has taken various initiatives / majors to increase its uptake and to create awareness among the various stakeholders and public at large through National & State level  awareness  campaigns  such  as  Newspaper  advertisements,  Radio  Jingles,  Exhibitions  & Expos, Fairs, Buyer-Seller Meets etc. since the inception of the scheme.

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## ANNEXURE  REFERRED  TO  IN  REPLY  TO  PART  (e)  OF  THE  LOK  SABHA UNSTARRED  QUESTION  NO.  4549  FOR  ANSWER  ON  19.03.2026  REGARDING 'MICRO FOOD PROCESSING ENTERPRISES UNDER PMFME SCHEME'

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.

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