Pradhan Mantri Formalisation of Micro Food Processing Enterprises (PMFME) Scheme
The Pradhan Mantri Formalisation of Micro Food Processing Enterprises (PMFME) Scheme is a centrally sponsored scheme launched on 29th June 2020 by the Ministry of Food Processing Industries. It aims to formalize and upgrade 2,00,000 micro food processing units through credit-linked subsidies, training, and handholding support – with a total outlay of ₹10,000 crore.
The scheme adopts a "One District One Product" (ODOP) approach to promote unique local food products, strengthen value chains, and boost rural employment. Over 2 lakh enterprises have already been assisted, leveraging investments of over ₹20,300 crore.
Objectives
- Enhance competitiveness and formalise existing micro food processing units.
- Increase access to credit and financial support for micro enterprises.
- Support FPOs, SHGs, and cooperatives along the entire value chain.
- Improve branding, marketing, and packaging of local food products.
- Provide training, technical support, and handholding to entrepreneurs.
- Create jobs and boost rural economy through the ODOP approach.
Financial Assistance
- 35% capital subsidy (max ₹10 lakh per individual unit).
- Seed capital of ₹40,000 per SHG member for working capital & tools.
- 35% grant for capital investment to FPOs, SHGs, and cooperatives.
- Up to 50% grant for branding and marketing support to groups.
- Support for common infrastructure (processing, cold storage, labs).
- Collateral-free loans up to ₹2 crore under CGTMSE.
- 2% interest subvention on outstanding loan balance.
Eligible Beneficiaries
- Existing and new individual micro food processing entrepreneurs.
- Farmer Producer Organizations (FPOs).
- Self-Help Groups (SHGs).
- Producer Cooperatives.
- Groups working on "One District One Product" (ODOP) food items.
Special Focus: 90% first-generation entrepreneurs, 44% women. SC/ST allocations of 8.3% and 4.3% respectively.
Eligible Activities
- Upgrading or expanding existing micro food processing units.
- Setting up new units (only for ODOP products).
- Purchasing new machinery and equipment.
- Improving packaging, storage, and marketing.
- Training and skill development.
- Branding and marketing support for groups.
- Creating common infrastructure (labs, cold storage, incubation centres).
Important Information for MSME Owners
Everything you need to know to apply and benefit from the PMFME Scheme
Key Points to Remember
| Subsidy is credit-linked | You must get a bank loan first; subsidy comes after loan sanction. |
|---|---|
| No land cost included | Land cost cannot be part of project cost. |
| Formalisation is mandatory | You must get FSSAI registration, Udyam Aadhaar, and GST. |
| 3-year tracking | Account must remain standard for 3 years for full subsidy benefit. |
| Handholding is free | District Resource Persons provide free support – no fees to be paid. |
Quick Facts
| Total beneficiaries | Over 2 lakh micro enterprises |
|---|---|
| Total investment leveraged | Over ₹20,300 crore |
| Women beneficiaries | 44% of total |
| First-generation entrepreneurs | 90% of total |
| Enterprises formalised | Over 75,000 |
| SHG members supported | Over 4.18 lakh |
| Beneficiaries trained | Over 1.76 lakh |
| Average loan approval time | ~ 50 days after DPR approval |
Apply for PMFME Scheme
Simple step-by-step process to get started
Go Online
Visit the official PMFME website to start your application.
Register (New User)
Create an account by filling your basic details as per your Aadhaar card.
Fill & Submit
Fill the application form with personal, business, and financial details, upload documents, and submit.
Follow-up
Track your application status and coordinate with DLC for further process.
Important Documents Needed
Prepare the following documents based on your entity type
New Individual / Firm
- PAN card
- Aadhaar card & photo
- Address proof
- Bank statement/passbook
Existing (Turnover > ₹1 Cr)
- PAN card of all promoters
- Aadhaar card & photo (all promoters)
- Address proof
- Udyam Registration / Trade License
- Business partnership agreement (if any)
- Bank statement (last 6 months)
- Audited balance sheets (last 3 years)
- Proof of GST registration and returns
- List of machinery
- Photo of your unit
- Business licenses (FSSAI, Pollution, etc.)
Existing (Turnover < ₹1 Cr)
- Business PAN card
- Aadhaar card & photo of all promoters
- Address proof
- Udyam Registration / Trade License
- Business partnership agreement (if any)
- Bank statement (last 6 months)
Farmer Producer Companies
- PAN card (company/chairman)
- Aadhaar card & photo (chairman)
- Address proof
- Udyam Registration / Trade License
- Registration certificate
- Memorandum and Articles of Association
- List of directors with bio-data
- Shareholding pattern
- Board resolution for loan
- Bank statement (last 6 months)
- Audited balance sheets (last 3 years)
- Business licenses (FSSAI, etc.)
- GST registration and returns
- List of machinery
- Photo of unit
- Detailed Project Report (DPR)
Co-operative Societies
- PAN card (society/chairman)
- Aadhaar card & photo (chairman)
- Address proof of society
- Udyam Registration / Trade License
- Society registration certificate
- Society bye-laws
- List of board members with bio-data
- Shareholding pattern
- Board resolution for loan
- Bank statement (last 6 months)
- Machinery estimates/quotations
- Audited balance sheets (last 3 years)
- Business licenses (FSSAI, etc.)
- GST registration and returns proof
- List of machinery
- Photo of facility
- Detailed Project Report (DPR)
Self Help Groups
- Aadhaar card (all members)
- List of all members with photos and contact details
- Address proof of the unit
- Resolution signed by all members for loan
- Machinery estimates/quotations
- Group savings and loan details
- Detailed Project Report (DPR)
Watch Detailed Video Guide
Complete walkthrough of PMFME Scheme benefits, eligibility, and application process
Need Professional Assistance?
Our subsidy experts can help you with complete project documentation, eligibility assessment, application submission, and coordination with DLC for maximum benefits under the PMFME Scheme.
Got any questions?
Any existing or new micro food processing business, FPO, SHG, or cooperative working in food processing can apply.
Individuals can get a subsidy of 35% of project cost, up to ₹10 lakh. Groups like FPOs and SHGs can get a 35% grant on capital investment.
Upgrading or setting up food processing units, buying machinery, training, branding, marketing, and building common facilities like storage and labs.
No, loans up to ₹2 crore are covered under the CGTMSE guarantee, making them collateral-free.
Each district identifies one unique food product (e.g., mango, spices, millets) to receive focused support for value chain development, branding, and marketing.
