Government Identifies PMFME Implementation Challenges, Steps Up Support For Micro Food Processing Units

New Delhi, Jul 24 (KNN) The government has identified several implementation challenges under the Pradhan Mantri Formalisation of Micro Food Processing Enterprises (PMFME) Scheme while taking steps to strengthen financial access, capacity building and market linkages for micro food processing units, the Lok Sabha was informed.

Government Identifies Key Implementation Challenges

Minister of State for Food Processing Industries Ravneet Singh said the centrally sponsored, demand-driven scheme supports micro food processing enterprises through financial, technical and business assistance.

The minister said key challenges include limited awareness among beneficiaries, delays in release of the state share, difficulties in obtaining statutory registrations and licences, inadequate technology adoption, capacity constraints, gaps in project preparation, branding and market linkages, and documentation requirements for food safety compliance.

Model DPRs and Resource Persons to Improve Project Preparation

To improve project preparation, the government has developed 190 model Detailed Project Reports (DPRs) covering various food processing activities through NIFTEM-Thanjavur and NIFTEM-Kundli. These are available on the PMFME portal for prospective beneficiaries.

States and Union Territories have also engaged District Resource Persons (DRPs) to provide end-to-end support, including project identification, DPR preparation, online application submission, statutory registrations, coordination with banks and enterprise formalisation.

Capacity Building and Financial Support Strengthened

The scheme has established a capacity-building framework through Master Trainers and District Level Trainers, who conduct Entrepreneurship Development Programmes and product-specific training to improve project quality, credit readiness and loan sanction rates.

Under the PMFME Scheme, eligible Farmer Producer Organisations (FPOs), Self-Help Groups (SHGs), cooperatives and government agencies receive financial assistance of 35 percent of the eligible project cost, subject to a maximum of Rs 3 crore, for creating common infrastructure, food processing facilities, value chains and incubation centres.

As of June 30, 2026, the government has approved 80 Common Incubation Centres across 27 states and Union Territories to improve access to modern processing, testing, packaging, storage and training infrastructure for micro food processing enterprises.

Focus on Formalisation and Improved Credit Flow

The minister said State Level Technical Institutes have also been identified to support training, technical guidance, localisation of training material and beneficiary handholding, while all scheduled commercial banks are participating in the scheme. 

Regular review meetings are being held with state governments and banks to improve credit flow and implementation.

According to the government, the PMFME Scheme promotes formalisation of micro food processing enterprises by facilitating UDYAM, FSSAI and other statutory registrations, while supporting technology upgradation, common infrastructure, value addition, entrepreneurship and employment generation.

(KNN Bureau)