What is PM FME – Formalization of Micro Food Processing Enterprises Scheme?
Under the Aatmanirbhar Bharat Abhiyan, the Ministry of Food Processing Industry (MoFPI) has launched the Pradhan Mantri Formalisation of PM FME – Formalization of Micro Food Processing Enterprises Scheme, which aims to improve the competitiveness of existing individual micro-enterprises in the unorganized food processing industry and promote formalization.
The plan will be executed over five years, from 2020-21 to 2024-25, with a budget of Rs 10,000 crore. The program focuses on Farmer Producer Organizations (FPOs), Self Help Groups (SHGs), and Producers Cooperatives involved in agri-food processing along the whole value chain. In addition, the PMFME initiative assists in the following areas:
- Credit-linked capital subsidy of 35% of qualifying project cost with a maximum ceiling of Rs.10 lakh per unit for food processing businesses.
- For operating capital and the acquisition of minor tools, each SHG member receives a seed capital of Rs. 40,000/-.
- FPOs, SHGs, and producer cooperatives get a credit-linked grant of 35% for capital investment.
- Support for micro-unit marketing and branding.
- SHGs, FPOs, and Producer Cooperatives get funding for shared infrastructure and mentoring.
- Providing capacity-building and training assistance to businesses to improve their capabilities and workers’ skills.
Main Objectives of PM FME – Formalization of Micro Food Processing Enterprises Scheme
The following are the goals of the PM Formalization of Micro Food Processing Enterprises Scheme:
- Micro food entrepreneur capacity building
- They will be given technical information.
- Hand-holding support services are another component that will be provided.
- Upgrading the technology of current Micro Food Processing Enterprises by giving entrepreneurs more access to finance.
- To promote the integration of existing companies with organized supply chains, branding and marketing must be increased.
- Support Farmer Producer Organizations (FPOs), Self Help Groups (SHGs), Producers Cooperatives, and Cooperative Societies along their complete value chain to enable microenterprises to access shared services.
- A regulatory framework to put current disorganized micro food processing businesses into a legally compliant structure.
What is One-District One-Product (ODOP) Approach?
Product-specific traditional industrial centres will be developed under the PM FME Scheme using the ODOP methodology. It is based on Uttar Pradesh’s ODOP initiative, implemented in all 75 districts to promote indigenous and specialized goods.
Under PM FME, the following are termed ODOP:
- Agri-products that are perishable
- Product made from cereals
- A food product that is widely produced in a district and related industries.
The following are the key aspects to remember regarding ODOP :
- It will serve as a foundation for the creation of value chains and the alignment of support infrastructure.
- Each state will identify one product per district based on the availability of raw resources and existing clusters.
- A cluster can be associated with one or more communities.
- Existing businesses that can create items using the ODOP method will be given priority.
- Only meals accessible under the ODOP programme will be eligible for shared infrastructure, marketing, and branding assistance. (An exception has been made)
- The ODOP strategy complements the government’s current promotional efforts:
- National Rurban Mission
- Agriculture Export Policy
How FPU is required under PM FME – Formalization of Micro Food Processing Enterprises Scheme?
- The unorganized food processing industry, which employs almost 25 lakh people, accounts for 74 per cent of all food processing jobs.
- A variety of difficulties confront the unorganized food processing sector, limiting its performance and expansion. For example, lack of access to contemporary technology and equipment, training, access to institutional financing, a lack of fundamental understanding of product quality control, and a lack of branding and marketing abilities, to name a few.
- Despite its enormous potential, the unorganized food processing industry produces far less value addition and output due to these problems.
Nearly 66 per cent of these units are in rural regions, and almost 80 per cent of them are family-owned businesses that support rural people’ livelihoods and reduce migration to cities. These businesses are mainly classified as micro-businesses.
Benefits to Food Processing Units under PM FME – Formalization of Micro Food Processing Enterprises Scheme
| Beneficiaries and Components | Benefits |
| Existing Food Processing Units That Aren’t Organized |
A maximum grant of Rs.10 lakhs is available.
|
| SHGs/FPOs/Cooperatives |
A credit-linked grant of 35 per cent of the project cost is available for capital expenditures, with a maximum ceiling set out.
|
| A person engages in the food processing industry. |
As working capital, Rs. 40000 is supplied as seed capital.
|
| Common Infrastructure |
With a maximum ceiling of 35 per cent of the project cost, a credit-linked grant is available.
|
| Marketing and Branding |
With a set maximum limit, you can spend up to 50% of your income.
|
FAQ’s – PM FME – Formalization of Micro Food Processing Enterprises Scheme
✅What is the goal of the PM micro food processing enterprises scheme?
Under the Aatmanirbhar Bharat Abhiyan, the Ministry of Food Processing Industry (MOFPI) has launched the Pradhan Mantri Formalisation of Micro Food Processing Enterprises (PMFME) scheme, which aims to improve the competitiveness of existing individual micro-enterprises in the unorganized food processing sector.
✅What is the PM Kisan Sampada Yojana, and how does it work?
PM Kisan SAMPADA Yojana is a complete package that would develop modern infrastructure and effective supply chain management from farm to retail.
✅How to utilize the PM FME – Micro Food Processing Enterprises Formalization Scheme?
Formalization of Micro Food Enterprises Form is available on the PM FME Scheme Portal. At pmfme.mofpi.gov.in, you may register for the PM FME Scheme and fill out an online Formalization of Micro Food Enterprises application form.
