PMFME Scheme Formalises 74,363 Micro Food Processing Units: Government

New Delhi, Jul 25 (KNN) A total of 74,363 micro food processing enterprises have been formalised under the Pradhan Mantri Formalisation of Micro Food Processing Enterprises (PMFME) Scheme as of June 30, 2026, the Rajya Sabha was informed.

Minister of State for Food Processing Industries Ravneet Singh said the scheme provides credit-linked financial assistance of 35 percent of the eligible project cost, subject to a maximum grant of Rs 10 lakh, for setting up new or upgrading existing micro food processing units, including those promoted by Self-Help Groups (SHGs) and Farmer Producer Organisations (FPOs).

Financial Support Extended To SHGs, FPOs And Common Infrastructure

The scheme also provides 35 percent financial assistance, up to Rs 3 crore, for establishing Common Facility Centres (CFCs), food processing lines, value chains and incubation centres.

In addition, eligible SHG members receive seed capital assistance of Rs 40,000 each, with a maximum limit of Rs 4 lakh per group for working capital and procurement of small tools and equipment.

As of June 30, 2026, the government has approved subsidies worth Rs 29.94 crore for 1,483 SHG-led micro food processing enterprises and Rs 94.37 crore for 307 FPO-led enterprises under the credit-linked subsidy component.

Seed capital assistance of Rs 1,166.99 crore has also been sanctioned for 3.44 lakh rural SHG members.

Cold Chain Infrastructure Expanded Under PMKSY

The minister said that under the Integrated Cold Chain and Value Addition Infrastructure component of the Pradhan Mantri Kisan SAMPADA Yojana (PMKSY), 409 integrated cold chain projects have been approved, of which 311 have been completed.

These projects have created a preservation capacity of 46.83 lakh metric tonnes and processing capacity of 153.01 lakh metric tonnes annually, helping reduce post-harvest losses and improve supply chain efficiency.

Government Promotes Millet Processing And Value Addition

The PMFME Scheme also supports millet processing through credit-linked subsidies, common infrastructure, and branding and marketing assistance to strengthen millet value chains and promote domestic and export markets.

Additionally, the government is implementing a Production Linked Incentive (PLI) Scheme for millet-based products to encourage value addition and expand their market presence.

Policy Measures Aim To Attract Investment

To boost foreign investment in the food processing sector, the government has exempted all processed food items from industrial licensing requirements, permitted 100 percent Foreign Direct Investment (FDI) under the automatic route in food processing.

They also allowed 100 percent FDI under the government approval route for trading, including e-commerce, in food products manufactured in India.

It also noted that more than 95 percent of food products now fall under the lower GST slabs of 0 and 5 percent.

(KNN Bureau)