Prime Minister Formalization for Micro Enterprises

PMFME

The Prime Minister Formalization of Micro Food Processing Enterprises (PMFME) Scheme is a government program launched on 29th June 2020 by the Ministry of Food Processing Industries. The scheme aims to help small food processing businesses in India, especially those in the unorganized sector, to upgrade, modernize, and become part of the formal economy. It provides financial support, training, and other help to individuals, groups like Farmer Producer Organizations (FPOs), Self Help Groups (SHGs), and cooperatives, so they can improve their businesses, get better access to credit, and market their products more effectively.

Objectives

  • ☉ Help small food processing businesses upgrade their technology and become formal, organized businesses.
  • ☉ Increase access to credit and financial support for micro food processing units.
  • ☉ Support FPOs, SHGs, and cooperatives throughout the value chain.
  • ☉ Improve branding, marketing, and packaging of local food products.
  • ☉ Provide training and technical support to entrepreneurs.
  • ☉ Create more jobs and boost the rural economy.
  • ☉ “One District One Product” approach to promote unique local food products and is set to run for five years with a total budget of ₹10,000 crore

Benefits

  • ☉ Credit-linked subsidy/grant of 35% of the project cost, up to a maximum of ₹10 lakh per unit for individuals.
  • ☉ Seed capital of up to ₹40,000 per SHG member for working capital and small tools.
  • ☉ 35% grant for capital investment to FPOs, SHGs, and producer cooperatives.
  • ☉ Up to 50% financial grant for branding and marketing support to groups.
  • ☉ Support for common infrastructure and handholding for SHGs, FPOs, and cooperatives.
  • ☉ Collateral-free loans up to ₹2 crore under the Credit Guarantee Trust Fund for Micro & Small Enterprises (CGTMSE).
  • ☉ Loan facility for up to 90% of the project cost.

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.

Eligible Activities

  • ☉ Upgrading or expanding existing micro food processing units.
  • ☉ Setting up new food processing units under ODOP.
  • ☉ Buying new machinery and equipment.
  • ☉ Improving packaging, storage, and marketing.
  • ☉ Training and skill development.
  • ☉ Branding and marketing support for groups.
  • ☉ Support for common infrastructure like labs and storage facilities.

Apply for PMFME Scheme

  • ☉ Go Online: Visit the official PMFME website to start your application.
  • ☉ Register (If New User): Create an account by filling your basic details as per your Aadhaar card.
  • ☉ Login and Start Application: Use your username and password to log in and begin your application.
  • ☉ Fill the Application Form: Enter your personal, business, and financial details and upload documents.
  • ☉ Submit: Click submit to complete your application and get a confirmation.

Important Documents Needed

For New Individual/Firm

  • ☉ PAN card: Your permanent account number for identity.
  • ☉ Aadhaar card & photo: Proof of identity and your photo.
  • ☉ Address proof: Any document showing your current address.
  • ☉ Bank statement/passbook: Proof of your bank account and transactions.

For Existing Businesses (Turnover above ₹1 crore)

  • ☉ PAN card of all promoters/business owners.
  • ☉ PAN cards of allAadhaar card & photo (all promoters): Aadhaar and photo for each owner.
  • ☉ Address proof: Document showing business address.
  • ☉ Udyam Registration/Trade License: Proof your business is registered.
  • ☉ Business partnership agreement: Document showing business partners (if any).
  • ☉ Bank statement/passbook: Bank record for the last 6 months.
  • ☉ Audited balance sheets (last 3 years)
  • ☉ Proof of GST registration and returns
  • ☉ List of machinery: Details of machines used in your business.
  • ☉ Photo of your unit: Picture of your business premises.
  • ☉ Business licenses (FSSAI, Pollution, etc.): Proof you can legally run your business.

For Existing Businesses (Turnover below ₹1 crore)

  • ☉ Your business’s PAN card
  • ☉ Aadhaar card & photo of all promoters)
  • ☉ Address proof: Proof of your business address.
  • ☉ Udyam Registration/Trade License: Business registration proof.
  • ☉ Business partnership agreement: If you have business partners.
  • ☉ Bank statement/passbook: Last 6 months’ bank record.

For Farmer Producer Companies (FPCs)

  • ☉ PAN card (company/chairman): PAN card for company or chairman.
  • ☉ Aadhaar card & photo (chairman): Aadhaar and photo of chairman.
  • ☉ Address proof: Proof of company address.
  • ☉ Udyam Registration/Trade License: Registration proof.
  • ☉ Registration certificate: Proof the company is legally registered.
  • ☉ Memorandum and Articles of Association: Company’s rules and objectives.
  • ☉ List of directors with bio-data: Names and details of all directors.
  • ☉ Shareholding pattern: Who owns how many shares.
  • ☉ Board resolution for loan: Official approval for taking a loan.
  • ☉ Bank statement (last 6 months): Recent bank account record.
  • ☉ Audited balance sheets (last 3 years): Company’s financial records.
  • ☉ Business licenses (FSSAI, etc.): Legal licenses to operate.
  • ☉ GST registration and returns: GST proof and tax returns.
  • ☉ List of machinery: Details about company machines.
  • ☉ Photo of your unit: Picture of your company’s facility.
  • ☉ Detailed Project Report (DPR): Full plan for your project.

For Co-operative Societies

  • ☉ PAN card for society/chairman)
  • ☉ Aadhaar card & photo of chairman)
  • ☉ Address proof of society
  • ☉ Udyam Registration/Trade License
  • ☉ Society registration certificate: Proof society is registered.
  • ☉ Society bye-laws: Rules for running the society.
  • ☉ List of board members with bio-data: Names and details of board members.
  • ☉ Shareholding pattern: Who owns how many shares in the society.
  • ☉ Board resolution for loan (Official approval for a loan)
  • ☉ Bank statement (last 6 months)
  • ☉ Machinery estimates/quotations (Cost details for buying machines.)
  • ☉ Audited balance sheets (last 3 years)
  • ☉ Business licenses (FSSAI, etc.)
  • ☉ GST registration and returns proof
  • ☉ List of machinery
  • ☉ Photo of your facility or unit
  • ☉ Detailed Project Report (DPR)

For Self Help Groups (SHGs)

  • ☉ Aadhaar card (all members): Aadhaar for every member.
  • ☉ List of all members with photos and contact details
  • ☉ Address proof of the unit: Where your group operates.
  • ☉ Resolution signed by all members for loan
  • ☉ Machinery estimates/quotations
  • ☉ Group savings and loan details
  • ☉ Detailed Project Report (DPR)

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FREQUENTLY ASKED QUESTIONS

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Any existing or new micro food processing business, FPO, SHG, or cooperative working in food processing can apply for this scheme.

You can get a subsidy of 35% of your project cost, up to ₹10 lakh for individuals, and up to 35% grant for groups like FPOs and SHGs.

The scheme supports upgrading or setting up food processing units, buying machinery, training, marketing, branding, and building common facilities like storage and labs

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