Over 1.96 Lakh Micro Food Enterprises Benefit Under PMFME Scheme: MoFPI

New Delhi, May 23 (KNN) The Pradhan Mantri Formalisation of Micro Food Processing Enterprises (PMFME) Scheme has supported more than 1.96 lakh micro food processing enterprises across the country.

It has also promoted rural entrepreneurship, women-led businesses and local value addition, the Ministry of Food Processing Industries (MoFPI) said on Thursday.

Addressing a media interaction in New Delhi, Devesh Deval, Joint Secretary, MoFPI, highlighted the achievements of the scheme and its role in strengthening India's largely unorganised food processing sector.

Launched in 2020 under the Aatmanirbhar Bharat Abhiyan, the PMFME Scheme aims to formalise and modernise nearly 25 lakh unregistered micro food processing enterprises by addressing gaps in finance, technology, branding, packaging, quality standards and market access. 

With an outlay of Rs 10,000 crore, the centrally sponsored scheme was initially approved for 2020-21 to 2024-25 and has been extended until September 2026.

Strong Push for Rural Entrepreneurship and Women-Led Growth 

A key feature of the programme is the One District One Product (ODOP) approach, which strengthens region-specific food processing ecosystems. Under the scheme, 137 unique products have been identified across 726 districts in 35 States and Union Territories.

The initiative offers financial and institutional support, including a 35 percent credit-linked subsidy of up to Rs 10 lakh for individual enterprises and up to Rs 3 crore for groups such as FPOs, FPCs, SHGs and cooperatives for developing common infrastructure. 

It also provides Rs 40,000 seed capital per SHG member, along with incubation, capacity-building, branding and handholding support.

So far, 1,96,270 individual enterprises have received credit-linked subsidy support, with women making up over 40 percent of beneficiaries. Additionally, over four lakh SHG members have received seed capital assistance, while 1,72,870 participants have undergone capacity-building programmes.

Market Access, Incubation and Employment Generation 

The scheme has also approved 80 incubation centres, of which 31 are operational, along with 32 proposals and 40 ODOP brands under branding and marketing support. 

More than 200 food products, including millet-based items, GI-tagged products, makhana, spices, dairy and bakery goods, have been launched, benefiting 1,164 micro enterprises. 

The Ministry of Food Processing Industries has also signed an MoU with the Government e-Marketplace (GeM) to improve market access for supported enterprises.

Speaking on the scheme’s impact, Deval said the PMFME Scheme has become a key intervention for strengthening the country’s micro food processing ecosystem by improving access to finance, training, branding, marketing and formal market linkages.

He noted that the scheme has generated livelihood opportunities for around 5.89 lakh people across the food processing value chain, while also empowering women entrepreneurs, self-help groups and rural enterprises.

The PMFME Scheme has also enabled beneficiary participation in major domestic and international exhibitions such as World Food India, AAHAR and SIAL India, helping micro enterprises expand their market reach.

At World Food India 2025, credit-linked subsidies worth Rs 778 crore were released to 26,000 beneficiaries, while over 100 beneficiary stalls showcased their products at the event.

Officials noted that the scheme has supported greater formalisation in the micro food processing sector, with more entrepreneurs obtaining food safety registrations and adopting improved quality, safety and packaging standards. 

By promoting processing, preservation and value addition at the grassroots level, the initiative is also helping reduce post-harvest losses, generate employment and strengthen rural economies through more sustainable and inclusive entrepreneurship.

(KNN Bureau)