Central Govt Business & Entrepreneurship

Pradhan Mantri Formalisation Of Micro Food Processing Enterprises

PM FME is a central government scheme helping micro food processing businesses (fewer than 10 workers) formalize and upgrade, with a 35% credit-linked capital subsidy of up to ₹10 lakh. It also supports Self-Help Groups with ₹40,000 seed capital per member, and FPOs/cooperatives with grants for capital investment, branding, and marketing. Apply online at pmfme.mofpi.gov.in using your Aadhaar-linked account.

Ministry of Food Processing Industries For: Infra Official Source

About This Scheme

Full official description

Launched on 29th June 2020, PMFMPE is a Centrally Sponsored Scheme by the Ministry of Food Processing Industries, designed to address the challenges faced by the micro-enterprises and to tap the potential of groups and cooperatives in supporting the upgradation and formalization of these enterprises.

Aims:

Enhance the competitiveness of existing individual micro-enterprises in the unorganized segment of the food processing industry and promote formalization of the sector; and
Support Farmer Producer Organizations (FPOs), Self Help Groups (SHGs), and Producers Cooperatives along their entire value chain.

Objectives:

To build the capability of microenterprises to enable:

Increased access to credit by existing micro food processing entrepreneurs, FPOs, Self Help Groups, and Co-operatives.
Integration with an organized supply chain by strengthening branding & marketing.
Support for the transition of existing 2,00,000 enterprises into a formal framework.
Increased access to common services like common processing facilities, laboratories, storage, packaging, marketing, and incubation services.
Strengthening of institutions, research, and training in the food processing sector; and
Increased access for the enterprises, to professional and technical support.

Outlay:

The scheme envisages an outlay of ₹ 10,000 crores over a period of five years from 2020-21 to 2024-25. The expenditure under the scheme would be shared in a 60:40 ratio between Central and State Governments, in a 90:10 ratio with the North In Eastern and the Himalayan States, a 60:40 ratio with UTs with the legislature and 100% by the Center for other UTs.

Coverage:

Under the scheme, 2,00,000 micro food processing units will be directly assisted with credit-linked subsidies. Adequate supportive common infrastructure and institutional architecture will be supported to accelerate the growth of the sector.

Benefits

35% credit-linked capital subsidy, up to ₹10,00,000 per individual micro food processing enterprise
SHG members receive seed capital of ₹40,000 per member for working capital and small tools
FPOs and cooperatives get a 35% grant with credit linkage for capital investment
Training, DPR preparation, and handholding support from SRLM-trained resource persons
Branding and marketing support including tie-ups with retail chains for ODOP products
Eligibility to also access collateral-free CGTMSE loans up to ₹2 crore and MUDRA loans up to ₹10 lakh

Who Can Apply (Eligibility)

Existing micro food processing units with fewer than 10 workers (unincorporated, proprietary, or partnership firms)
Applicant must be 18+ years old with at least Class 8 (VIII) educational qualification
Only one family member per household is eligible (family = self, spouse, children)
Must contribute at least 10% of project cost; land cost cannot be included in project cost
For FPOs/Co-operatives: minimum ₹1 crore turnover and at least 3 years of experience in the ODOP product
For SHGs: must be actively engaged in food processing; seed capital given via SHG federation as a loan to members
New units are eligible only for One District One Product (ODOP) categories in their district

Exclusions

How to Apply

Online

Step 1: Visit https://pmfme.mofpi.gov.in/pmfme/#/Home-Page Click on "Login", then click "Applicant Login". You will be redirected to the login screen of the application. If you are an existing user, select the "Beneficiary Type", provide your "User ID" and "Password" and click "Submit". Once validated, you will be able to enter the website.

Step 2: If you are a new user and want to register for the scheme, click on "Sign Up". The "NEW USER REGISTRATION" form will open. Provide the following mandatory details (as per the Aadhaar Card): Select the type of Beneficiary: Individual / Group Application / Common Infrastructure Application Further, if you have selected either "Group Application" or "Common Infrastructure Application", choose the type of "Non-Individual" Application: Cooperative Society / Farmer Producer Companies (FPC/FPO) / Self Help Groups (SHG) Name (नाम) Email ID (ईमेल आईडी) Mobile Number (मोबाइल नंबर) Address (पता) State (राज्य) District (जिला)

Step 3: Click on "Register". You will be registered for the PMFMFPE scheme. You shall receive an email over the registered email ID with the username and password. A notification regarding the successful registration will also be obtained on the registered mobile number. Apply for the PMFMFPE Scheme -

Step 1: Use your login credentials to login into the system. On the next screen, select your role: Individual New Food Processing Enterprise Individual Applicant (Present Business Turnover more than ₹ 1,00,00,000) Individual Applicant (Present Business Turnover less than ₹ 1,00,00,000)

Step 2: Select the desired option and click "Submit". On the Confirmation Pop-Up, select "Yes". You will be directed to the applicant's dashboard. On the Left Pane, you can see three options: Home / Apply Online / Guidelines and Instructions. You can either click "Guidelines and Instructions" to read and download the scheme guidelines, else you can directly click "Apply Online".

Step 3: On clicking "Apply Online", you will be directed to the application form. The form consists of seven sections - Applicant Details, Existing Enterprise, Proposed Business Details, Financial Details, Lending Bank, Upload Documents, Declaration, and Submit.

Step 4: Provide all the mandatory details, upload the required documents in the format, check the declaration and click "Submit" to submit the application form. The notification regarding the successful application submission will be shown on the screen. The same will also be received at the registered email id of the user. Source(s): User Manual (English): blob:https://pmfme.mofpi.gov.in/2f07ed0d-1309-4a40-9b70-ebe99d8d8eba User Manual (Hindi): blob:https://pmfme.mofpi.gov.in/f6323fc0-e335-4ce2-bffb-e593963d35d2

Frequently Asked Questions

What Is PM FME Scheme?

PM FME stands for "Prime Minister Micro Food Processing Enterprises". PMFME is an all-India Centrally Sponsored Scheme with an outlay of Rs. 10,000 crores for coverage of 2,00,000 enterprises over 5 years from 2020-21 to 2024-25 being implemented by MOFPI.

What Are Micro Enterprises?

A Micro Enterprise is an enterprise where the investment in Plant and Machinery or Equipment is not more than Rs. 1 crore and the Annual Turnover is not more than Rs. 5 crore.

Is There Any Limit Of Credit Subsidy/Grant?

Yes, it would be 35% of the project cost with a maximum ceiling of Rs 10 lacs for an individual beneficiary. For SHG members involved in food processing, seed capital of Rs 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, the specific allocation has been made for Scheduled Caste/ Scheduled Tribe and the North-Eastern region.

When The Subsidy Amount Will 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

I Have Applied For The Benefits Of The Scheme. Can My Son/Daughter/Sprouse 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 Of Other Government Schemes With The PMFME Scheme?

Yes, you can avail of other Government schemes with PMFME Scheme

How Branding And Marketing Support Will 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 in the following ways: Training relating to marketing to be fully funded under the scheme Developing a common brand and packaging including standardization to participate in common packaging 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, the assistance of Rs 50,000/- per case would be provided to FPOs/SHGs/ Cooperative 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 Will Be Charged?

No, it's a centrally sponsored scheme, you need not to 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 Of 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 Of The Benefits Of The Scheme?

Yes, the applicant should have an ownership right of the enterprise and an 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.

Ready to apply?

Visit the official government portal to apply for this scheme.

Apply on myScheme.gov.in

Documents Required

Checklist for submitting Credit Proposals:
(New Enterprises- Individual/Firms)
Mandatory Documents
1. PAN Card of concern/all promoters
2. Aadhaar Copy & Photo of all promoters/guarantors
3. Address Proof:
I. Utility bill, which is not more than two months old of any service provider, (Electricity, telephone, post-paid mobile phone, piped gas, water bill) or
ii. Property or Municipal tax paid receipt or
iii. Ration Card (Individual)
4. Photocopy of Bank Statement/ Bank Passbook for the last 6 months
Optional Documents
1. Photocopy of highest academic qualification of promoter/s
2. Sanction letter of active loans,
3. Loan statement of active loans
4. Any other Document
Checklist for submitting Credit Proposals.
(Existing Enterprises- Individual/Firms with more than 1 Cr Turn over)
1. PAN Card of concern/group concerns/all promoters/guarantors
I. Utility bill, which is not more than two months old of any service
provider, (Electricity, telephone, post-paid mobile phone, piped gas,
water bill) or
ii. Property or Municipal tax paid receipt
4. Udhayam Registration Certificate/s/ IE code- wherever applicable/Licenses (Trade License/Shop & Establishment Registration/Panchayat License/Corporation License/Municipality License)
5. Business Partnership Agreement (If Individual/Proprietor- not applicable)
6. Photocopy of Bank Statement/ Bank Passbook for the last 6 months of the firm
7. Audited balance sheet with annexures of max 3 years with ITR
8. Copy of License as per industry (Eg. FSSAI, Pollution Clearance, ESI etc)
9. GSTIN Registration Certificate
10. GST returns of last financial years
11. List of existing machinery and equipment
12. Photo of the Existing unit
1. Loan statement of active loans
2. Sanction letter of active loans
3. Insurance Policy copy of the existing unit & Stock.
4. Audited balance sheet of Group/Sister concern with annexures of last 3 years with ITR
5. Latest Stock Statement
6. Quarterly sales-purchase of previous year and current year
7. Photocopy of highest academic qualification of promoter/s
8. Any other document.
(Existing Enterprises- Individual/Firms with less than 1 Cr Turn over)
1. PAN Card of concern
1. Audited/ Self-affixed balance sheet with annexures of max. 3 years with ITR
2. Copy of License as per industry (Eg. FSSAI, Pollution Clearance, ESI etc)
3. GSTIN Registration Certificate if applicable
4. GST returns of last 1 year if applicable
5. Loan statement of active loans
6. Sanction letter of active loans
7. Insurance Policy copy of the existing unit & Stock.
8. Latest Stock Statement
9. Quarterly sales-purchase of previous year and current year
10. Any other document.
11. Photocopy of highest academic qualification of promoter/s
(Farmers Producer Companies- Existing Enterprises)
1. PAN Card of company/ Chairman/Chief Executive
2. Aadhaar Copy & Photo of Chairman/Chief Executive
5. Certificate of registration
6. Memorandum and Articles of Association
7. List of Directors and brief bio-data attested by authorised signatory
8. Details of share holding pattern attested by authorised signatory
9. Board resolution for availing loan/borrowing power/borrowing authority
10. Photocopy of Bank Statement/ Bank Passbook for the last 6 months of the company
11. Audited balance sheet with annexures of max. 3 years with ITR
12. Copy of License as per industry (Eg. FSSAI, Pollution Clearance, ESI etc), if available
13. GSTIN Registration Certificate
14. GST returns of last 3 years (for existing unit)
15. List of existing machinery and equipment
16. Photo of the existing unit
17. DPR
4. Latest Stock Statement/register
5. Quarter-wise sales-purchase of previous year and current year
6. Copies of Minutes of last AGM and Board meeting
7. Copies of recent grants
8. Annual Report for the last year
9. Agreements made with Buyers
10. Any other Documents
(Co-operative Society- Existing Enterprise)
1. PAN Card of Society/Chairman/President/Chief Executive
2. Aadhaar Copy & Photo of Chairman/President/Chief Executive
5. Certificate of Co-operative Society registration
6. Copy of Society Bye laws with its amendments if any
7. List of Board Executive Members and brief bio-data attested by authorised signatory
10. Photocopy of Bank Statement/ Bank Passbook for the last 6 months of the society
11. Estimates and Quotation of all capital machineries and equipment
12. Audited balance sheet with annexures of max. 3 years with ITR (for existing unit)
13. Copy of License as per industry (Eg. FSSAI, Pollution Clearance, ESI etc)
14. GSTIN Registration Certificate
15. GST returns of last one year
16. List of existing machinery and equipment
17. Photo of the existing unit
18. DPR
8. Annual report of the Society for the last year
9. Agreements made with buyers
(Self Help Groups)
1. Aadhaar Copy of all the Members of the group
2. List of all the members of the group with photo, contact no. & address of individual members
3. Address Proof of the Unit:
4. Resolution copy signed by all the members of SHG to avail loans.
5. Estimates and Quotation of all capital machineries and equipment
6. Details of Group Savings, loans details etc.
7 DPR
3. Copies of Minutes of last meeting of SHG members
4. Agreements made with Buyers, if any.
5. Copies of any other Government grants received, if any.
6. Photocopy of Bank Statement/ Bank Passbook for the last 6 months of the SHG
7. Any other documents