Pradhan Mantri Formalisation of Micro Food Processing Enterprises (PM FME) Scheme Background: The Union Minister for Food Processing Industries presided over a special national event in New Delhi to celebrate the historic milestone of the number of beneficiaries availing credit facilities reaching two lakhs. About Scheme The 'Pradhan Mantri Formalisation of Micro Food Processing Enterprises (PM FME) Scheme' is a centrally sponsored scheme aimed at supporting and strengthening the informal micro food processing sector in India. By providing financial assistance, advanced technology, common infrastructure, branding support, and easy access to bank credit, the scheme helps small food processing businesses become part of the formal economy. Launch Details Launched on 29 June 2020. Introduced under the 'Atmanirbhar Bharat Abhiyan' (Self-Reliant India Mission). Implementing Ministry Implemented by the Union Ministry of Food Processing Industries. Objective To formalize approximately 25 lakh informal micro food processing enterprises across the country. To enhance their productivity, quality, competitiveness, and market access. Key Features 35% credit-linked capital subsidy. Eligible micro food processing units receive a 35% subsidy on the cost of upgrading machinery, technology, and packaging. The maximum subsidy available is ₹10 lakh. One District One Product (ODOP) Each district promotes a key food product based on local resources and demand. • This helps enhance the production, processing, branding, and marketing of the product. Support for Common Infrastructure Farmer Producer Organizations (FPOs), cooperative societies, and federations of Self-Help Groups (SHGs) can avail a 35% subsidy (up to ₹3 crore) to establish common facilities such as processing units, storage facilities, testing laboratories, and packaging centers. Seed Capital for SHG Members Seed capital of ₹40,000 is provided to each eligible SHG member. This amount can be utilized as working capital or for purchasing small food processing equipment. Branding and Marketing Assistance FPOs and cooperative societies receive 50% financial assistance…
