Pradhan Mantri Formalisation of Micro Food Processing
Enterprises (PMFME)
Prelims:
Government
Schemes
Mains:
GS Paper III –
Food Processing and Related Industries
Current relevance:
The
Ministry of Food Processing Industries (MoFPI) organised the PMFME Bazaar
on 24–25 August 2026 at India Habitat Centre, bringing together
exhibitors from 25 States and Union Territories.
Highlights:
PMFME Scheme:
1.
Pradhan
Mantri Formalisation of Micro Food Processing Enterprises (PMFME) Scheme was
launched on 29 June 2020.
2.
It
supports micro food-processing enterprises through financial, technical and
business assistance.
3.
Assistance
enables entrepreneurs to establish new units or strengthen existing
enterprises.
4.
Under
its credit-linked capital subsidy, assistance of 35% of the total
project cost, up to ₹10 lakh per unit, is available.
5.
The
scheme supports improvements in processing machinery, production capacity,
branding and market access.
PMFME Bazaar –
Market Linkage Platform:
1.
The
Bazaar showcased India's unique, ethnic and traditional food products,
ranging from millets and spices to pickles, snacks and beverages.
2.
It
brought exhibitors from 25 States and Union Territories onto a common
platform.
3.
Participants
included micro enterprises, SHGs, FPOs, cooperatives and entrepreneurs.
4.
It
facilitates interaction with buyers, development of business
connections and exploration of new markets.
5.
It
demonstrates how local ingredients and traditional knowledge, combined with
value addition and branding, can transform regional food products into
commercially viable brands.
Case studies:
The
cases highlighted at the Bazaar demonstrate different dimensions of
food-processing value addition:
1.
Bihar
– Makhana: SHHE Foods
developed products such as makhana-infused cookies and convenient makhana
packs. With improved machinery, processing capacity increased from 100
kg/day to at least 1,000 kg/day.
2.
Rajasthan
– Jamun: Tribalveda
combines tribal knowledge and Ayurveda to produce
preservative-free jamun vinegar, cubes and strips, involving around 3,000–5,000
tribal women during the jamun season.
3.
Maharashtra
– Soya: Soya Rich
processes soya into soya milk and tofu, including flavoured variants
such as mint and smoked products.
4.
Odisha
– Millets: Malati Food
Products undertakes cleaning, grinding, processing and packaging of
different millet varieties.
Significance
for Rural Economy:
1.
Formalisation: Financial and technical assistance
helps small enterprises move towards more organised business operations.
2.
Value
addition: Processing
converts primary agricultural products such as makhana, jamun, soya and millets
into higher-value products.
3.
Technology
upgradation: Capital
subsidy facilitates investment in better machinery and processing capacity.
4.
Livelihood
generation: Enterprises
can create employment and strengthen livelihoods, illustrated by Tribalveda's
engagement with 3,000–5,000 tribal women.
5.
Market
diversification:
Businesses are accessing wider markets through trade fairs, government portals
and online platforms.
6.
Export
potential: Supported
enterprises have reached markets such as Dubai and the USA, while others are
exploring future exports.
7.
Regional
heritage: The model
enables traditional foods, indigenous knowledge and local ingredients to
acquire wider commercial reach.
Source: PIB - https://www.pib.gov.in/PressReleaseDetail.aspx?PRID=2303426®=48&lang=1