Pradhan Mantri Formalisation Of Micro Food Processing Enterprises (PMFMPE) 2026: 35% Credit Subsidy up to ₹10 Lakh
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Quick answer
The PMFMPE scheme, launched in 2020, provides credit-linked subsidies to formalise micro food processing enterprises. It offers 35% subsidy up to ₹10 lakh for individual entrepreneurs and seed capital of ₹40,000 per SHG member. Applications are submitted online through the official PMFMPE portal.
At a glance
| Main benefit | Key Benefits of PMFMPE |
| Ministry / department | Ministry of Food Processing Industries |
| Level | Central Government |
| Age | 18 years and above |
| Application mode | Online |
About the scheme
PMFMPE is a Centrally Sponsored Scheme by the Ministry of Food Processing Industries with an outlay of ₹10,000 crores (2020-21 to 2024-25). It aims to enhance competitiveness of existing micro-enterprises, support FPOs, SHGs, and cooperatives, and assist 2,00,000 units with credit-linked subsidies. The scheme covers branding, marketing, common infrastructure, and capacity building through national and state-level institutions.
Benefits
- 35% of project cost as credit-linked subsidy with maximum ceiling of ₹10 lakh for individual beneficiary
- Seed capital of ₹40,000 per SHG member for working capital and purchase of small tools
- Financial assistance of ₹50,000 per case for preparation of Detailed Project Report (DPR) for FPOs/SHGs/Cooperatives on successful loan sanction
- Branding and marketing support for FPOs/SHGs/Cooperatives including training, common brand development, packaging standardization, marketing tie-ups, and quality control
- Support for common infrastructure like processing facilities, laboratories, storage, packaging, marketing, and incubation services
- Capacity building and research support through national institutions (NIFTEM, IIFPT) and eligible state-level technical institutions
Who can apply (eligibility)
- Existing micro food processing unit in operation, identified in SLUP for ODOP products or verified by Resource Person
- Unincorporated enterprise employing less than 10 workers, preferably involved in ODOP product of the district
- Applicant above 18 years with at least VIII standard pass education, having ownership rights (proprietary/partnership firm)
- Only one person per family (self, spouse, children) eligible for financial assistance
- Willing to formalize, contribute 10% of project cost, and obtain bank loan; land cost excluded from project cost
- Cooperatives/FPOs: minimum turnover ₹1 crore, project cost not exceeding turnover, members with 3 years experience, 10% project cost and margin money from internal resources or state grant
- SHGs (Seed Capital): members presently engaged in food processing, commitment to use funds for working capital and small tools
- SHGs (Credit Linked Grant): 10% project cost and 20% margin money for working capital from own funds or state grant, members with 3 years ODOP processing experience
- Branding & Marketing: ODOP-related proposal, minimum turnover ₹5 crore, final product in retail pack, applicant as FPO/SHG/cooperative/SPV, scalable product and producers, established management capability
- National Institutions: NIFTEM and IIFPT eligible for capacity building and research support
- State-Level Technical Institutions: must meet 10 criteria including food processing courses, laboratory, faculty, pilot plants, and state government recommendation
Who cannot apply
- Enterprises employing 10 or more workers
- Incorporated companies
- Units not willing to formalize or contribute 10% project cost
- Applicants below 18 years or without VIII standard pass qualification
- More than one person from the same family
- New units not under ODOP (except for groups/cooperatives/FPOs/SHGs)
Documents required
- Proof of ownership of enterprise (proprietorship/partnership deed)
- Electricity bill or inventory/sales records as proof of existing operation
- Educational qualification certificate (minimum VIII standard pass)
- Age proof (above 18 years)
- Bank loan sanction letter
- Detailed Project Report (DPR)
- Turnover proof (for cooperatives/FPOs: ₹1 crore; for branding: ₹5 crore)
- Experience certificates (3 years for cooperatives/FPOs/SHGs)
- ODOP product verification from Resource Person or SLUP
- Commitment letters for contribution (10% project cost, margin money)
- SHG Federation member details (product, turnover, raw material source, marketing)
How to apply
- 1Visit the official PMFMPE portal (pmfme.mofpi.gov.in) and register as a new user
- 2Fill the online application form with personal, enterprise, and project details
- 3Upload all required documents including ownership proof, educational certificates, project report, and bank details
- 4Submit the application for verification by the Resource Person and State Level Upgradation Plan (SLUP) committee
- 5Upon preliminary approval, the application is forwarded to the selected bank for loan processing
- 6After loan sanction, the credit-linked subsidy is processed through the nodal bank and credited to the beneficiary's mirror account
- 7Beneficiary must operate the unit and pay EMIs for 3 years; after 3 years if loan is standard, subsidy is credited to beneficiary account
Frequently asked questions
What is PM FME Scheme?+
PM FME stands for Prime Minister Micro Food Processing Enterprises. It is an all-India Centrally Sponsored Scheme with an outlay of ₹10,000 crores for coverage of 2,00,000 enterprises over 5 years from 2020-21 to 2024-25, implemented by the Ministry of Food Processing Industries.
What are Micro Enterprises?+
A Micro Enterprise is an enterprise where the investment in Plant and Machinery or Equipment is not more than ₹1 crore and the Annual Turnover is not more than ₹5 crore.
Is there any limit of credit subsidy/grant?+
Yes, it would be 35% of the project cost with a maximum ceiling of ₹10 lakh for an individual beneficiary. For SHG members involved in food processing, seed capital of ₹40,000 per member will be distributed as working capital and for the purchase of small tools.
Is there any initial investment required by the person for the scheme?+
Yes, the applicant should be willing to contribute 10% of the project cost.
What is the process of crediting subsidies?+
At the national level, a Nodal bank would be appointed for the disbursement of subsidies to the banks and liaison with the banks.
Is there any provision of special benefits for SC/ST applying in the scheme?+
Yes, specific allocation has been made for Scheduled Caste/Scheduled Tribe and the North-Eastern region.
When will the subsidy amount be credited to my account?+
On sanction of the loan, the Central and State government will transfer the fund to the beneficiary mirror account. The beneficiary needs to pay the EMI on time for the next three years and the unit needs to be operational. Post 3 years, if the loan category is standard, the subsidy amount will be credited to the beneficiary account.
Can my son/daughter/spouse also apply for the same as they are dealing in ODOP processing?+
No, only one person from one family would be eligible for obtaining financial assistance. The family for this purpose would include self, spouse and children.
Can I avail other government schemes with the PMFME scheme?+
Yes, you can avail other Government schemes with PMFME Scheme.
How will branding and marketing support be provided under this scheme?+
Marketing and branding support would be provided to groups of FPOs/SHGs/Cooperatives under the Scheme following the ODOP approach: training relating to marketing fully funded, developing common brand and packaging including standardization, marketing tie-up with national and regional retail chains and state level institutions, quality control to ensure product quality meets required standards.
Is there any provision of financial assistance for the preparation of DPR?+
Yes, assistance of ₹50,000 per case would be provided to FPOs/SHGs/Cooperatives for preparation of DPR on all successful sanctions of the loan application.
What is the duration of the scheme?+
The scheme is for a period of 5 years from 2020-21 to 2024-25.
Is any processing fees or application fees charged?+
No, it's a centrally sponsored scheme, you need not pay any fees for filling application or any handholding.
Is there any age limit to apply?+
Yes, the applicant should be above 18 years of age.
Is there any qualification required to avail the benefits of the scheme?+
Yes, the applicant should possess at least VIII standard pass educational qualification.
Are there any other eligibility criteria to avail the benefits of the scheme?+
Yes, the applicant should have ownership right of the enterprise and the enterprise could be a proprietorship or a partnership firm.
If my application is rejected, can I resubmit the application?+
Yes, if the application is rejected by one bank, you can resubmit the application with another bank.
More than 10 workers are employed in my enterprise. Can I apply for this scheme?+
No, according to the eligibility criteria, the enterprise should be unincorporated and should employ less than 10 workers for availing the benefits of the scheme.
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