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PMFME Scheme (Prime Minister Formalisation of Micro Food Processing Enterprises Scheme)

Published 11 Jul 2026. Access the PDF directly or read the stored explanation below.

UPSC English 11 Jul 2026

PMFME Scheme (Prime Minister Formalisation of Micro Food Processing Enterprises Scheme)

Prelims:

Economy, Agriculture, Government Schemes

Mains:

GS Paper II-Government Policies & Interventions, GS Paper III Agriculture, Economy, Inclusive Growth

Current relevance:

         The Ministry of Food Processing Industries (MoFPI) has announced that the Pradhan Mantri Formalisation of Micro Food Processing Enterprises (PMFME) Scheme has achieved a major milestone by sanctioning loans to more than two lakh micro food processing enterprises across the country.

 Highlights:


Highlights:


1.      PMFMPE is a Centrally Sponsored Scheme by the Ministry of Food Processing Industries. Designed to address the challenges faced by the micro-enterprises and to tap the potential of groups and cooperatives in supporting the upgradation and formalization of these enterprises.

2.      Beneficiaries: Individuals, Farmer Producer Organizations (FPOs), Self Help Groups (SHGs), and Producers Cooperatives along their entire value chain.

3.      To build the capability of microenterprises to enable:

        i.            Increased access to credit 

            Achieved: 

·         Sanction of loans to more than two lakh+ beneficiaries

·         90 percent of beneficiaries are first-generation entrepreneurs and 44 percent are women entrepreneurs

      ii.            Integration with an organized supply chain by strengthening branding & marketing.

            Achieved:

·         Scheme calls for One District One Product (ODOP) approach .

·         Under this scheme, support for 40 common brands covering nearly 200 products, through which PMFME is building local value chains around products such as Makhana, millets, spices and GI-tagged products across the country.

    iii.            Support for the transition of existing 2,00,000 enterprises into a formal framework.

            Achieved: 

·         Over 75,000 PMFME-supported enterprises have entered the formal economy through registrations such as Udyam Aadhaar, Udyam Assist, FSSAI and GST.

·         Under this scheme, there is Support for Self-Help Groups (SHGs) known as Seed capital:

·         Provision: Seed capital Rs40,000/- per member of SHG for working capital and purchase of small tools would be provided under the scheme.

4.      Increased access to common services like common processing facilities, laboratories, storage, packaging, marketing, and incubation services.

5.      Strengthening of institutions, research, and training in the food processing sector; and

6.      Increased access for the enterprises, to professional and technical support.

 

source: PIB - https://www.pib.gov.in/PressReleasePage.aspx?PRID=2283606&reg=48&lang=1

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