PMFME Scheme 2023-24: Empowering India’s Food Processing Industry

The Prime Minister’s Formalization of Micro Food Processing Enterprise (PMFME) scheme is an initiative by the Indian government to promote the growth of micro food processing enterprises in the country. The scheme aims to provide financial assistance, technical support, and business incubation to these enterprises, thereby creating employment opportunities and boosting the rural economy. In this article, we will discuss the PMFME scheme in detail and its benefits for micro food processing enterprises.

Table of Contents

What is the PMFME Scheme?

The PMFME scheme was launched by the Ministry of Food Processing Industries in June 2020. The scheme aims to provide financial, technical, and business support to micro food processing enterprises in the country. The scheme has a total outlay of Rs. 10,000 crores and is expected to benefit around 2 lakh micro-enterprises.

Key Features of the PMFME Scheme

The PMFME scheme has several key features that make it an attractive option for micro food processing enterprises. Some of these features are:

One District One Product (ODOP) approach: The scheme adopts the ODOP approach to reap the benefits of scale in terms of procurement of inputs, availing common services, and marketing of products.
Credit-linked subsidy: The scheme provides a credit-linked subsidy of 35% for the eligible enterprises in the general areas and 50% in the case of enterprises located in the North-Eastern Region and the Himalayan States.
Capacity building and training: The scheme provides for capacity building and training of the beneficiaries to improve their skills and knowledge.
Marketing and branding support: The scheme provides for marketing and branding support to the beneficiaries to help them promote their products and reach a wider audience.

Benefits of the PMFME Scheme

The PMFME scheme has several benefits for micro food processing enterprises. Some of these benefits are:

Financial assistance: The scheme provides financial assistance to the eligible enterprises in the form of credit-linked subsidy, which can help them set up their business and expand their operations.
Technical support: The scheme provides technical support to the beneficiaries in the form of capacity building and training, which can help them improve their skills and knowledge.
Business incubation: The scheme provides business incubation support to the beneficiaries, which can help them develop their business plans and strategies.
Employment generation: The scheme is expected to generate employment opportunities in the rural areas, thereby boosting the rural economy.

Objectives of the PMFME Scheme

To promote the growth of micro food processing enterprises in the country.
To provide financial assistance, technical support, and business incubation to these enterprises.
To create employment opportunities and boost the rural economy.

Key Features of the PMFME Scheme

One District One Product (ODOP) approach.
Credit-linked subsidy of 35% for the eligible enterprises in the general areas and 50% in the case of enterprises located in the North-Eastern Region and the Himalayan States.
Capacity building and training of the beneficiaries.
Marketing and branding support to the beneficiaries.

Benefits of the PMFME Scheme

Financial assistance to the eligible enterprises in the form of credit-linked subsidy.
Technical support to the beneficiaries in the form of capacity building and training.
Business incubation support to the beneficiaries.
Employment generation in the rural areas, thereby boosting the rural economy.

Duration of the PMFME Scheme

The PMFME Scheme is implemented for a period of five years, from 2020-21 to 2024-25.

Eligibility Criteria for the PMFME Scheme

The scheme is open to all micro food processing enterprises in the country.
The enterprise should be registered under the Food Safety and Standards Act, 2006.
The enterprise should have a valid Udyog Aadhaar Number (UAN).

How to Apply for the PMFME Scheme?

The submission process for the applicants to apply for the credit-linked subsidy is done through the online portal (www.pmfme.mofpi.gov.in).
The applicants need to register themselves on the portal and fill in the application form.
The application will be scrutinized by the State Level Implementation Committee (SLIC) and the District Level Implementation Committee (DLIC).

How can micro food processing units apply for the PMFME scheme?

Micro food processing units can apply for the PMFME scheme by following these steps:

Visit the official PMFME scheme website at https://pmfme.mofpi.gov.in/pmfme/.
Register themselves on the portal and fill in the application form.
Submit the application form online.
The application will be scrutinized by the State Level Implementation Committee (SLIC) and the District Level Implementation Committee (DLIC).
The scheme provides credit-linked capital subsidy of 35% of the eligible project cost with a maximum ceiling of Rs.10 lakh per unit.
The scheme also provides 50% financial grant for branding and marketing support to groups of FPOs/ SHGs/ Cooperatives or a SPV of micro food processing enterprises.
The eligibility criteria for individual micro enterprises under the scheme are existing micro food processing units in operations, with investment not exceeding Rs. 10 lakhs.
The guidelines for support of individual micro food processing enterprises under the PMFME scheme can be found at https://pmfmeap.org/sites/default/files/2021-07/06_Guidelines%20for%20Support%20of%20Individual%20Micro%20Food%20Processing%20Enterprises%20under%20the%20PMFME%20Scheme.pdf.

What is the process to register for the PMFME scheme?

Here is the process to register for the PMFME scheme:

Visit the official PMFME scheme website at https://pmfme.mofpi.gov.in/pmfme/.
Click on the “Register” button on the homepage.
Fill in the registration form with the required details such as name, email ID, mobile number, etc.
Once the registration is complete, log in to the portal using the registered email ID and password.
Fill in the application form with the required details such as enterprise name, location, investment, etc.
Upload the necessary documents such as Permanent SSI Registration, Industrial Entrepreneur Memorandum (IEM), or Industrial License, whichever is applicable.
Submit the application form online.
Post loan sanction under the PMFME scheme, the beneficiaries may register themselves and submit the application in AIF and AHIDF portal by uploading the PMFME.
The application will be scrutinized by the State Level Implementation Committee (SLIC) and the District Level Implementation Committee (DLIC).
The scheme provides credit-linked capital subsidy and branding and marketing support to eligible micro food processing enterprises.
The guidelines for support of individual micro food processing enterprises under the PMFME scheme can be found at https://pmfmeap.org/sites/default/files/2021-07/06_Guidelines%20for%20Support%20of%20Individual%20Micro%20Food%20Processing%20Enterprises%20under%20the%20PMFME%20Scheme.pdf[6]

What is the AIF and AHIDF portal and how to access it for PMFME scheme registration?

The AIF and AHIDF portal is a platform where beneficiaries of the PMFME scheme can register themselves and submit their applications for additional benefits of subsidy. Here’s how to access it for PMFME scheme registration:

Visit the official PMFME scheme website at https://pmfme.mofpi.gov.in/pmfme/

Click on the “Register” button on the homepage.

Fill in the registration form with the required details such as name, email ID, mobile number, etc.

Once the registration is complete, log in to the portal using the registered email ID and password.

Fill in the application form with the required details such as enterprise name, location, investment, etc.

Upload the necessary documents such as Permanent SSI Registration, Industrial Entrepreneur Memorandum (IEM), or Industrial License, whichever is applicable.

Submit the application form online.

Post loan sanction under the PMFME scheme, the beneficiaries may register themselves and submit the application in AIF and AHIDF portal by uploading the PMFME.

The application will be scrutinized by the State Level Implementation Committee (SLIC) and the District Level Implementation Committee (DLIC).

The scheme provides credit-linked capital subsidy and branding and marketing support to eligible micro food processing enterprises.

The guidelines for support of individual micro food processing enterprises under the PMFME scheme can be found at https://pmfmeap.org/sites/default/files/2021-07/06_Guidelines%20for%20Support%20of%20Individual%20Micro%20Food%20Processing%20Enterprises%20under%20the%20PMFME%20Scheme.pdf.

PMFME Scheme in Hindi

Please check out the video in hindi

Conclusion

The PMFME scheme is a significant initiative by the Indian government to promote the growth of micro food processing enterprises in the country. The scheme provides financial, technical, and business support to the beneficiaries, which can help them set up their business, expand their operations, and generate employment opportunities. The scheme has several key features and benefits that make it an attractive option for micro food processing enterprises. By promoting the growth of these enterprises, the scheme can contribute to the overall development of the rural economy.

FAQs

What is the eligibility criteria for the PMFME Scheme?

The scheme is open to all micro food processing enterprises registered as legal entities under the relevant laws of the country.
The enterprises should have a valid Udyog Aadhaar Memorandum (UAM) number.
The enterprises should comply with all the applicable laws and regulations.

How can I apply for the PMFME Scheme?

Interested entrepreneurs can apply for the scheme through the official website of the Ministry of Food Processing Industries or the designated portal for the scheme.
The application process involves providing necessary details about the enterprise, its activities, and the proposed project.

What is the duration of the PMFME Scheme?

The scheme is implemented for a period of five years from 2020-21 to 2024-25.

What is the role of the Ministry of Food Processing Industries in the PMFME Scheme?

The Ministry of Food Processing Industries is the nodal agency responsible for the implementation and monitoring of the PMFME Scheme.
It provides policy support, technical assistance, and financial resources for the successful execution of the scheme.

What are the benefits of the PMFME Scheme for micro food processing enterprises?

The scheme provides financial assistance in the form of credit-linked subsidies to eligible enterprises.
It offers training and capacity building support to enhance the skills and knowledge of the entrepreneurs.
The scheme promotes marketing and branding activities to improve the visibility and market reach of the enterprises.
It encourages the development of common infrastructure facilities to support the growth of the enterprises.

Can I avail of the credit-linked subsidy if my enterprise is not registered under the relevant laws?

No, the scheme is open only to micro food processing enterprises registered as legal entities under the relevant laws of the country.

Is there any specific preference given to women entrepreneurs under the PMFME Scheme?

Yes, enterprises owned by women are eligible for a higher credit-linked subsidy of 50%.

What is the role of technology upgradation in the PMFME Scheme?

The scheme provides support for technology upgradation to enhance the productivity and efficiency of the micro food processing enterprises.
It aims to promote the adoption of advanced technologies and practices to improve the quality of products and reduce wastage.

What are the financial benefits available under the PMFME Scheme?

The PMFME Scheme offers a credit-linked subsidy of 35% for eligible enterprises in the general category and 50% for enterprises owned by women, SC/ST, or aspirational districts.
This subsidy can be utilized for various purposes such as the purchase of machinery, equipment, and other eligible expenses.

How can micro food processing enterprises access credit under the PMFME Scheme?

The scheme provides credit facilities through various financial institutions such as banks, non-banking financial companies (NBFCs), and cooperative banks.
Enterprises can apply for loans under the scheme by fulfilling the eligibility criteria and submitting the required documents.

What is the process for availing the credit-linked subsidy under the PMFME Scheme?

To avail the credit-linked subsidy, micro food processing enterprises need to apply through the designated portal or the official website of the Ministry of Food Processing Industries.
The application should include all the necessary details and supporting documents as per the guidelines provided.

Are there any specific provisions for women entrepreneurs under the PMFME Scheme?

Yes, the PMFME Scheme provides special incentives and support for women entrepreneurs.
Enterprises owned by women are eligible for a higher credit-linked subsidy of 50%.

What is the role of marketing and branding in the PMFME Scheme?

The scheme aims to support micro food processing enterprises in their marketing and branding activities.
It provides assistance for activities such as product promotion, packaging design, market research, and participation in trade fairs and exhibitions.

How can micro food processing enterprises participate in trade fairs and exhibitions under the PMFME Scheme?

The scheme facilitates the participation of micro food processing enterprises in trade fairs and exhibitions by providing financial support and guidance.
Enterprises can apply for participation through the designated portal or the official website of the Ministry of Food Processing Industries.

What are the common infrastructure facilities promoted under the PMFME Scheme?

The PMFME Scheme promotes the development of common infrastructure facilities such as testing laboratories, storage facilities, and processing units.
These facilities are intended to be shared by multiple micro food processing enterprises to reduce costs and improve efficiency.

How can micro food processing enterprises access training and capacity building support under the PMFME Scheme?

The scheme provides training and capacity building support through various institutions and organizations.
Micro food processing enterprises can participate in training programs, workshops, and skill development initiatives to enhance their knowledge and skills.

What is the expected impact of the PMFME Scheme on the food processing industry?

The PMFME Scheme is expected to have a significant impact on the food processing industry in India.
It aims to promote the growth of micro food processing enterprises, enhance their competitiveness, and create employment opportunities in rural areas.
The scheme is expected to contribute to the overall development of the food processing sector and boost the economy of the country.

How can I get more information about the PMFME Scheme?

For more information about the PMFME Scheme, you can visit the official website of the Ministry of Food Processing Industries or refer to the guidelines and notifications issued by the government.

What is the role of technology upgradation in the PMFME Scheme?

The scheme provides support for technology upgradation to enhance the productivity and efficiency of the micro food processing enterprises.
It aims to promote the adoption of advanced technologies and practices to improve the quality of products and reduce wastage.

What are the financial benefits available under the PMFME Scheme?

The PMFME Scheme offers a credit-linked subsidy of 35% for eligible enterprises in the general category and 50% for enterprises owned by women, SC/ST, or aspirational districts.
This subsidy can be utilized for various purposes such as the purchase of machinery, equipment, and other eligible expenses.

What is the DRP manual and how is it related to the PMFME scheme?

The DRP manual is a training manual for District Resource Persons (DRPs) under the PMFME scheme. Here’s how it is related to the PMFME scheme:

The PMFME scheme is a centrally sponsored scheme under Atmanirbhar Bharat Abhiyan that is designed to address the challenges faced by micro-enterprises in the food processing sector.
The scheme aims to provide financial assistance, technical support, and business incubation to micro food processing enterprises in the country.
The DRP manual is a training manual for DRPs who are responsible for providing training and capacity building to the beneficiaries of the PMFME scheme.
The manual provides an overview of the PMFME scheme, its guidelines, objectives, capacity building framework, and implementation.
The manual also covers topics such as the status, market size, and scope of food grain processing in India.
The scheme provides credit-linked capital subsidy and branding and marketing support to eligible micro food processing enterprises..
The DRPs play a crucial role in the implementation of the PMFME scheme by providing training and capacity building to the beneficiaries, which can help them improve their skills and knowledge and make the most of the scheme’s benefits..

What is the role of the District Resource Person (DRP) in the PMFME scheme?

The District Resource Person (DRP) plays a crucial role in the implementation of the PMFME scheme. Here are some of the key responsibilities of the DRP:

Providing hand-holding support to the micro food processing enterprises in each of the districts.
Helping beneficiaries in formalizing their micro food processing enterprises.
Providing training and capacity building to the beneficiaries to improve their skills and knowledge.
Providing technical support to the beneficiaries in the areas of food processing, packaging, and marketing.
Assisting the beneficiaries in availing the benefits of the PMFME scheme such as credit-linked capital subsidy and branding and marketing support.
Ensuring the timely and effective implementation of the PMFME scheme at the district level.

Where to find ODOP List?

Visit the official PMFME scheme website at https://pmfme.mofpi.gov.in/pmfme/

On the right side, click on ODOP list and download it.

What are the responsibilities of the State Nodal Agency (SNA) in the PMFME scheme?

The State Nodal Agency (SNA) has several responsibilities in the PMFME scheme. Here are some of the key responsibilities of the SNA:

Acting as the operational agency at the state level.
Nominating and providing training to the Master Trainers (MT), District Level Trainers (DLT), DRPs, and beneficiaries.
Playing a crucial role in the implementation of the capacity building component of the scheme.
Providing policy support and support for the creation of infrastructure, capacity expansion/upgradation, and other supportive measures for the growth of micro food processing enterprises in the state..
Engaging private training providers for providing training to food processing entrepreneurs, SHGs/FPOs/Cooperatives, workers, and other groups.
Appointing DRPs to provide hand-holding support to potential beneficiaries/beneficiaries.