Pradhan Mantri Formalisation Of Micro Food Processing Enterprises

Who Can Apply

Farmer Producer Organizations (FPOs)

Self Help Groups (SHGs)

Existing micro food processing entrepreneurs

Cooperatives

Which Projects Are Eligible Under PMFME

  • Existing micro food processing units, units identified in the State Level Upgradation Plan
    (SLUP) for ODOP products, and units using electrical power (as evidenced by an electricity
    bill)
  • Existing groups, SHGs, or SHG Federations involved in food processing, those identified in the SLUP for ODOP products, and those with members having at least 3 years of experience in
    processing the ODOP product.
  • Existing groups, SHGs, or SHG Federations involved in food processing, those identified in the SLUP for ODOP products, and those with members having at least 3 years of experience in processing the ODOP product.

Benefit

  • Individual units: Up to 35% of project cost, maximum Rs. 10 lakh.
  •  Common infrastructure: Up to 35% of project cost, maximum Rs. 3 crore.
  • Up to Rs. 40,000 per SHG member, maximum Rs.4 lakh per SHG.
  • Up to 50% of overall expenses.

Type of incentives

  • Credit-linked capital subsidy: 35% for approved project costs (equipment, upgrades, working
    capital) via banks. Requires 10% beneficiary contribution.
  •  Seed capital: Rs. 40,000 per member of Self Help Groups (SHG) for working capital and tools
    (limited per SHG).
  • Grant assistance: Additional grants for specific project components (e.g., quality testing labs).
  • Training: Food safety, packaging, marketing, and entrepreneurship skills development.
  • Market linkages: Connecting with buyers, processors, and wholesalers.
  •  Branding and promotion: Help with brand recognition to increase market value.
  •  Handholding and guidance: Support throughout the application and implementation process.