Over 1.6 Lakh Loans Sanctioned As PMFME Scheme Accelerates Nationwide

New Delhi, Dec 6 (KNN) Stating that Pradhan Mantri Formalisation of Micro Food Processing Enterprises (PMFME) scheme has steadily expanded its reach, Minister of State for Food Processing Industries Ravneet Singh has said that major components of the sceme hasmade notable progress as of 31 October 2025.

In written reply to a question in Parliament, the Minister informed the House that a total of 1,62,744 loans have been sanctioned under the credit-linked subsidy, while seed capital has been approved for 3,65,935 SHG members. 

The Food Ministry has cleared 101 proposals for Common Infrastructure Facilities, 76 incubation centres, and 27 proposals for branding and marketing support.

Rising Financial Support

Centre-share fund releases have grown steadily over the years. Allocations stood at Rs 367.61 crore in FY21, Rs 297.44 crore in FY22 and Rs 268.52 crore in FY23, as per the official data. 

Funding saw a sharp jump in subsequent years, reaching Rs 765.30 crore in FY24 and Rs 1,142.56 crore in FY25, reflecting heightened implementation efforts and increased demand from micro enterprises.

Awareness and Capacity Building Efforts

The Ministry of Food Processing Industries (MoFPI) has undertaken wide-ranging outreach initiatives to boost scheme uptake. 

Awareness campaigns through newspapers, radio, exhibitions, fairs and buyer-seller meets have been conducted at national and state levels, with special focus on women groups and grassroots stakeholders.

Support Framework Under PMFME

The scheme aims to enhance the competitiveness and formalisation of micro food processing enterprises by providing financial support for technical assistance, capacity building, market linkages and branding.

Individual and group enterprises are eligible for a 35 percent  credit-linked capital subsidy, capped at Rs 10 lakh per unit. SHG members engaged in food processing receive seed capital of up to Rs 40,000 each, subject to a ceiling of Rs 4 lakh per SHG federation. 

Support for common infrastructure includes a 35 percent  subsidy up to Rs 3 crore for FPOs, SHGs, cooperatives or government agencies, with facilities accessible to other units on a rental basis. 

Assistance for branding and marketing is available up to 50 percent for groups or SPVs. The scheme also provides targeted entrepreneurship and product-specific skill training.

(KNN Bureau)