Lok Sabha Question No. 858 (UNSTARRED), answered on 2025-12-04
Subject: PM Formalisation of Micro Food Processing Enterprises Scheme
Ministry: FOOD PROCESSING INDUSTRIES
Asked by: Shri Brijmohan Agrawal

## GOVERNMENT OF INDIA MINISTRY OF FOOD PROCESSING INDUSTRIES

## LOK SABHA UNSTARRED QUESTION No. 858

ANSWERED ON 04 TH  DECEMBER, 2025

## PM FORMALISATION OF MICRO FOOD PROCESSING ENTERPRISES SCHEME

## 858. SHRI BRIJMOHAN AGRAWAL:

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

- (a) the details of PM Formalisation of Micro Food Processing Enterprises (PM-FMFPE) scheme and its budgetary layout with components, State-wise including Chhattisgarh;
- (b) the number of loans sanctioned under various components of the scheme till date and the details of beneficiaries for each financial year till date under the respective components, State-wise;
- (c) the number of registered micro food units in the country, State-wise;
- (d) the manner in which the Government plans to boost the uptake and effective implementation of the Branding and Marketing component vital for enabling micro units to achieve the vocal for local vision and compete successfully in national and international markets; and
- (e) whether targeted steps are being taken to ensure that these common infrastructure resources are  accessible,  affordable  and  practically  utilized  by  the  smallest  and  most  remote  micro entrepreneurs who may face geographical or logistical barriers, if so, the details thereof?

## 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 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 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-I.

The Centre Share of Rs. 4306.4 crores have been released to States/UTs for implementation of various components of the scheme including the State of Chhattisgarh till 31 st October 2025. The State -wise details are at Annexure II.

(b). 1,62,744 loans have been sanctioned for the credit linked subsidy across the country till 31 st October 2025.  The  details  of Year-wise  and  State-wise  loans  sanctioned  under  the  PMFME  Scheme  are  at Annexure III .

(c). As per the latest report of Annual Survey of Industries (ASI) for the year 2022-23, the total number of registered food processing units including micro food processing units are 42,801. The State-wise details are at Annexure IV.

(d). Under the Branding & Marketing component of PMFME Scheme, grant of upto 50% of the eligible project cost is provided to groups of FPOs, cooperatives, SHGs and State or regional SPVs of micro food processing enterprises to develop a common umbrella brand at the State or regional level. The component provides support in areas such as packaging & branding, quality control, standardization, and food safety adherence for consumer retail sales. The Government aims to strengthen the Branding and Marketing component by enhancing awareness, simplifying access, and providing technical and financial support for packaging, labelling, and common ODOP branding. It is facilitating tie-ups with retail, e-commerce, and export agencies, improving common facilities, and promoting local products through  targeted  campaigns,  enabling  micro  units  to  build  strong  market  identities  and  compete effectively at national and global levels. These measures aim to enable micro food processing enterprises to enhance product visibility, achieve the Vocal for Local vision, and compete effectively in national and international markets.

(e). Under the PMFME Scheme, support for creation of Common Facility Centre (CFC) is provided @ 35% of eligible project  cost  with  maximum limit of Rs. 3 Crore to  Farmer Producer  Organizations (FPOs)/ Self Help Groups (SHGs) and its Federations/ Cooperatives/ Government Agencies to establish food  processing  line  along  with  common  infrastructure/  value  chain/  incubation  centre.  Substantial capacity  of  the  CFC  is  available  for  use  by  other  units  and  public  on  hiring  basis.  The  common infrastructure facilities under the PMFME Scheme are accessible and affordable for even the smallest and most remote micro entrepreneurs. These include setting up CFCs in hilly, tribal and aspirational districts,  adopting  hub-and-spoke,  subsidizing  user  charges,  and  enabling  village-level  mobilization through District Resource Persons (DRPs).

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## ANNEXURE REFERRED TO IN REPLY TO PART (a) OF THE LOK SABHA UNSTARRED QUESTION NO. 858 FOR ANSWER ON 04.12.2025 REGARDING 'PM FORMALISATION OF MICRO FOOD PROCESSING ENTERPRISES 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.

## ANNEXURE REFERRED TO IN REPLY TO PART (a) OF THE LOK SABHA UNSTARRED QUESTION NO. 858 FOR ANSWER ON 04.12.2025 REGARDING 'PM FORMALISATION OF MICRO FOOD PROCESSING ENTERPRISES SCHEME'

State/ UT wise details of Centre Share funds released till 31.10.2025

| S.No.   | States/ UTs             | Centre Share (in Rs. Cr.)   |
|---------|-------------------------|-----------------------------|
| 1       | Andaman &Nicobar Island | 4.47                        |
| 2       | Andhra Pradesh          | 185.83                      |
| 3       | Arunachal Pradesh       | 36.62                       |
| 4       | Assam                   | 198.16                      |
| 5       | Bihar                   | 364.39                      |
| 6       | Chandigarh              | 2.21                        |
| 7       | Chhattisgarh            | 45.04                       |
| 8       | D &NHaveli&DnD          | 1.43                        |
| 9       | Delhi                   | 7.71                        |
| 10      | Goa                     | 14.94                       |
| 11      | Gujarat                 | 61.08                       |
| 12      | Haryana                 | 73.93                       |
| 13      | Himachal Pradesh        | 112.70                      |
| 14      | Jammu &Kashmir          | 46.55                       |
| 15      | Jharkhand               | 59.22                       |
| 16      | Karnataka               | 272.77                      |
| 17      | Kerala                  | 167.10                      |
| 18      | Ladakh                  | 7.06                        |
| 19      | Lakshadweep             | 1.01                        |
| 20      | Madhya Pradesh          | 263.53                      |
| 21      | Maharashtra             | 646.25                      |
| 22      | Manipur                 | 16.23                       |
| 23      | Meghalaya               | 24.37                       |
| 24      | Mizoram                 | 20.67                       |
| 25      | Nagaland                | 30.67                       |
| 26      | Odisha                  | 140.58                      |
| 27      | Puducherry              | 9.45                        |
| 28      | Punjab                  | 199.88                      |
| 29      | Rajasthan               | 83.22                       |
| 30      | Sikkim                  | 26.79                       |
| 31      | Tamil Nadu              | 362.19                      |
| 32      | Telangana               | 202.75                      |
| 33      | Tripura                 | 28.49                       |
| 34      | Uttar Pradesh           | 510.98                      |
| 35      | Uttarakhand             | 43.97                       |
| 36      | West Bengal             | 33.78                       |
|         | TOTAL                   | 4,306.04                    |

ANNEXURE REFERRED TO IN REPLY TO PART (b) OF THE LOK SABHA UNSTARRED QUESTION NO. 858 FOR ANSWER ON 04.12.2025 REGARDING 'PM FORMALISATION OF MICRO FOOD PROCESSING ENTERPRISES SCHEME'

State/UT wise & Year-wise loans sanctioned for Credit Linked Subsidy under PMFME Scheme as on 31 st  October 2025

| S. No.   | States and UTs    |   2021- 2022 | 2022- 2023   | 2023- 2024   |   2024- 2025 |   2025- 2026 |   No. of Loans Sanctioned |
|----------|-------------------|--------------|--------------|--------------|--------------|--------------|---------------------------|
| 1        | A&N               |            6 | 4            | 8            |            0 |            0 |                        18 |
| 2        | Andhra Pradesh    |          306 | 2808         | 2237         |         1667 |         1069 |                      8087 |
| 3        | Arunachal Pradesh |            1 | 21           | 28           |           48 |           38 |                       136 |
| 4        | Assam             |           39 | 659          | 633          |         1769 |         1500 |                      4600 |
| 5        | Bihar             |           91 | 2923         | 10284        |        10273 |         4152 |                     27723 |
| 6        | Chandigarh        |            5 |              |              |            0 |            0 |                         5 |
| 7        | Chhattisgarh      |           24 | 211          | 350          |          396 |          299 |                      1280 |
| 8        | D&D               |            0 | 2            | 5            |            0 |            5 |                        12 |
| 9        | Delhi             |           21 | 81           | 103          |           74 |           84 |                       363 |
| 10       | Goa               |            2 | 42           | 23           |           36 |           34 |                       137 |
| 11       | Gujarat           |            5 | 103          | 286          |          314 |          302 |                      1010 |
| 12       | Haryana           |           74 | 329          | 606          |          352 |          272 |                      1633 |
| 13       | Himachal Pradesh  |          156 | 603          | 550          |          496 |          732 |                      2537 |
| 14       | J&K               |           35 | 170          | 480          |          682 |          571 |                      1938 |
| 15       | Jharkhand         |            0 | 198          | 1527         |         1851 |          674 |                      4250 |
| 16       | Karnataka         |          259 | 1823         | 2011         |         2329 |         1302 |                      7724 |
| 17       | Kerala            |           59 | 807          | 2573         |         3116 |         1382 |                      7937 |
| 18       | Ladakh            |            6 | 26           | 33           |           17 |            8 |                        90 |
|          | Lakshadweep       |            0 | 0            | 0            |            0 |            0 |                         0 |
| 19       | Madhya Pradesh    |          237 | 1426         | 2692         |         5103 |         2486 |                     11944 |
| 20       | Maharashtra       |          636 | 6040         | 9493         |         7546 |         2457 |                     26172 |
| 21       | Manipur           |          180 | 67           | 13           |           31 |           17 |                       308 |
| 22       | Meghalaya         |            5 | 26           | 44           |          120 |           32 |                       227 |
| 23       | Mizoram           |            0 | 7            | 13           |           20 |           16 |                        56 |
| 24       | Nagaland          |            0 | 25           | 155          |          188 |           61 |                       429 |
| 25       | Odisha            |          149 | 620          | 627          |          731 |          605 |                      2732 |
| 26       | Puducherry        |            1 | 58           | 54           |           51 |           28 |                       192 |
| 27       | Punjab            |          134 | 837          | 1183         |          525 |          342 |                      3021 |
| 28       | Rajasthan         |           98 | 192          | 242          |          513 |          306 |                      1351 |
| 29       | Sikkim            |            2 | 31           | 20           |            8 |            4 |                        65 |
| 30       | Tamil Nadu        |          288 | 3717         | 7666         |         3587 |         1952 |                     17210 |
| 31       | Telangana         |          163 | 2067         | 3500         |         1136 |          400 |                      7266 |
| 32       | Tripura           |            7 | 43           | 63           |           77 |           58 |                       248 |
| 33       | Uttar Pradesh     |          212 | 2304         | 6654         |         7449 |         3956 |                     20575 |
| 34       | Uttarakhand       |           17 | 222          | 416          |          221 |          161 |                      1037 |
| 35       | West Bengal       |            0 |              | 22           |          149 |          260 |                       431 |
|          | Grand Total       |         3218 | 28492        | 54594        |        50875 |        25565 |                    162744 |

## ANNEXURE REFERRED TO IN REPLY TO PART (c) OF THE LOK SABHA UNSTARRED QUESTION NO. 858 FOR ANSWER ON 04.12.2025 REGARDING 'PM FORMALISATION OF MICRO FOOD PROCESSING ENTERPRISES SCHEME'

## State-wise details of registered food processing units

| S. No.   | State                              |   No. of Units (as per ASI*) |
|----------|------------------------------------|------------------------------|
| 1        | A &NIslands                        |                            6 |
| 2        | Andhra Pradesh                     |                         5427 |
| 3        | Arunachal Pradesh                  |                           51 |
| 4        | Assam                              |                         1750 |
| 5        | Bihar                              |                          953 |
| 6        | Chandigarh                         |                           19 |
| 7        | Chhattisgarh                       |                         2225 |
| 8        | Dadra &Nagar Haveli and Daman &Diu |                           33 |
| 9        | Delhi                              |                          151 |
| 10       | Goa                                |                           96 |
| 11       | Gujarat                            |                         2585 |
| 12       | Haryana                            |                         1008 |
| 13       | Himachal Pradesh                   |                          162 |
| 14       | Jammu and Kashmir                  |                          184 |
| 15       | Jharkhand                          |                          266 |
| 16       | Karnataka                          |                         2405 |
| 17       | Kerala                             |                         1725 |
| 18       | Ladakh                             |                            8 |
| 19       | Lakshadweep                        |                            0 |
| 20       | Madhya Pradesh                     |                         1096 |
| 21       | Maharashtra                        |                         2820 |
| 22       | Manipur                            |                           38 |
| 23       | Meghalaya                          |                           30 |
| 24       | Mizoram                            |                           29 |
| 25       | Nagaland                           |                           17 |
| 26       | Odis4ha                            |                         1356 |
| 27       | Puducherry                         |                           68 |
| 28       | Punjab                             |                         3457 |
| 29       | Rajasthan                          |                          980 |
| 30       | Sikkim                             |                           18 |
| 31       | Tamil Nadu                         |                         4996 |
| 32       | Telangana                          |                         3702 |
| 33       | Tripura                            |                          131 |
| 34       | Uttar Pradesh                      |                         2407 |
| 35       | Uttarakhand                        |                          374 |
| 36       | West Bengal                        |                         2230 |
|          | Total                              |                        42803 |

Source:  *Annual Survey of Industries 2022-23,