Launched on 29th June 2020, PMFMPE is a Centrally Sponsored Scheme by the Ministry of Food Processing Industries designed to boost the food processing sector. It focuses on micro-enterprises and supports the formalization and upgradation of these units. The scheme promotes Farmer Producer Organizations (FPOs), Self Help Groups (SHGs), and Producer Cooperatives in enhancing their competitiveness and integration into the organized supply chain.
Scheme Key Highlights (Short Summary)
• Launched by: Ministry of Food Processing Industries
• Target: Micro food processing enterprises and cooperative groups
• Objective: Improve access to credit, enhance marketing and branding, and formalize the food processing industry
• Outlay: ₹10,000 crores over five years (2020-2025)
• Support: Credit-linked subsidy, training, common infrastructure facilities, and branding support
Benefits
1. Support to Micro Enterprises
• 35% credit-linked capital subsidy on eligible project cost, capped at ₹10,00,000
• Minimum 10% beneficiary contribution
• Financial support for individual enterprises, FPOs, SHGs, and cooperatives
• Assistance for working capital up to ₹40,000 per SHG member
• Upgrading infrastructure, quality control measures, and access to branding/marketing
2. Support for FPOs and Producer Cooperatives
• 35% grant with credit linkage
• Training support for capacity building
3. SHG Support
• Seed capital of ₹40,000 per member for working capital and small tools
• 35% credit-linked grant for SHGs with a maximum of ₹10 lakh per group for capital investment
• Training & handholding support
4. Common Infrastructure Support
• Funding for common facilities like processing units, packaging, cold storage, and more
5. Branding and Marketing Support
• Fully funded training on marketing
• Support for branding, packaging, and quality control
• Marketing tie-ups with national and regional retail chains
Eligibility
For Individual Micro Enterprises:
• The enterprise should be in food processing
• Must be unincorporated with less than 10 workers
• Must be involved in the processing of One District One Product (ODOP) or other products in the food processing sector
• Must contribute 10% of the project cost
For FPOs/Cooperatives:
• Preference for ODOP products
• Minimum turnover of ₹1 crore
• Must have members with a minimum of 3 years of experience in food processing
For SHGs:
• SHG members engaged in food processing are eligible
• Seed capital for members, with grants for working capital and small tools
Exclusions
• The cost of land is not covered in the project cost
• Units that have already received government subsidies under other schemes are not eligible
• Working capital is not included in the subsidy calculation
Application Process
Online
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Step 1: Visit the PMFMPE portal (Link to Portal) and register using Aadhaar-based details
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Step 2: Login and fill out the Common Application Form
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Step 3: Complete the application, upload necessary documents, and submit for processing
Documents Required
Mandatory Documents
• PAN card of all promoters
• Aadhaar card and photograph of promoters
• Address proof (e.g., electricity bill, ration card, or property tax receipt)
• Bank statement for the last 6 months
• Udyam Registration Certificate (if applicable)
• GST registration certificate (if applicable)
• Audited balance sheet for the last 3 years (for existing businesses)
• Project Profile of the enterprise
• Partnership agreement or board resolution (if applicable)
• Training certificate (for SHGs and FPOs)
Optional Documents
• Loan sanction letter for active loans
• Insurance policy for machinery or stock
• Details of existing machinery and equipment
• Product samples or photos
Frequently Asked Questions (FAQs)
Q: What is the PMFMPE scheme?
A: The PMFMPE scheme provides credit-linked subsidy and support to micro food processing units, FPOs, SHGs, and cooperatives to promote the formalization and upgradation of food processing enterprises.
Q: What is the maximum financial assistance available?
A: The maximum assistance available is 35% of the eligible project cost, up to ₹10,00,000 per unit.
Q: Who is eligible for assistance under the scheme?
A: Individual food processing enterprises, FPOs, SHGs, and cooperatives involved in food processing or working with ODOP products are eligible.
Q: Can I apply for the scheme if I have already received government funding?
A: No, enterprises that have already received government subsidies under other schemes are not eligible.
Q: Is there a provision for marketing and branding support?
A: Yes, the scheme provides fully funded marketing training, branding support, and marketing tie-ups with national retailers.
Q: What is the duration of the scheme?
A: The PMFMPE scheme is operational from 2020-2025.