Pradhan Mantri Formalisation of Micro Food Enterprises (PM FME) Scheme

Launch Date 29th June 2020 PMFMPE is a Centrally Sponsored Scheme for the Ministry of Food Processing Industries, with an objective to address the bottlenecks being faced by micro-enterprises and tap the potential of groups and cooperatives to support the up-gradation and formalization of these entities.

Aiims:

1. Promoting the viability of existing small individual micro-enterprises in the unorganized segment of food processing so that this sector could be encouraged towards formalization
2. Support FPOs, Self-Help Groups (SHGs) and Producers Cooperatives along the entire value chain

Objectives:
To build the ability of microenterprises to facilitate:

1. Improved access to credit by existing Micro food processing entrepreneurs, FPOs, Self Help Groups and Co-operatives.
2. Access an organized supply chain through branding & marketing
3. Enable the existing 2,00,000 entities to formalize into a registered and organized structure.
4. Access better common services including common processing facilities, laboratories, storage, packaging, marketing and incubation services.
5. Institutional research and training development in food-processing; and
6. Enhanced access to the enterprises to professional and technical support.

Budget:

• The scheme will involve an expenditure of ₹ 10,000 crores during the five years from 2020-21 to 2024-25. Central and State Governments will share the expenditure under the scheme in a ratio of 60:40, and in the North, it will be in a ratio of 90:10 with the Centre.

• In the Eastern and the Himalayan States, the ratios worked out to 60:40 with UTs that had a legislature and 100 per cent by the Centre for other UTs.

Coverage:
The scheme will directly offer credit-linked subsidy support to 2,00,000 micro food processing units. There will be adequate supportive common infrastructure and institutional architecture that will be supported so that the sector can grow fast.

Advantages
The program has four broad components which address sectoral needs:

1. Counseling to individuals and groups of micro-enterprises.
2. Branding and Marketing support.
3. Establishment of strong institutions.
4. Structured project management structure.

Eligibility
The Eligible Borrowers for PMFMPE can be:

1. Farmer Producer Organization (FPO)
2. Self-Help Groups
3. Co-operatives
4. Existing Micro Food Processing Entrepreneurs
5. New Units, to be taken on at the individual or group level will only be financed under the One District One Product (ODOP)