New Delhi: The Pradhan Mantri Formalisation of Micro Food Processing Enterprises (PMFME) scheme has crossed a major milestone, with over 2 lakh micro food processing enterprises receiving credit-linked assistance since its launch in 2020, Union Minister for Food Processing Industries Chirag Paswan announced on Thursday.
Addressing an event to mark the achievement, Paswan said the scheme has facilitated project investments worth more than ₹20,300 crore, while the government has provided around ₹6,000 crore in subsidies to support the establishment and upgradation of micro food processing units across the country.
According to the Ministry of Food Processing Industries, the PMFME scheme has also generated nearly 11 lakh direct and indirect employment opportunities, reflecting its growing role in strengthening India’s food processing ecosystem and rural economy.
Highlighting the inclusive nature of the programme, the minister said around 90% of the beneficiaries are first-generation entrepreneurs, while 44% are women entrepreneurs. More than 75,000 enterprises supported under the scheme have entered the formal economy through registrations such as Udyam, Udyam Assist, FSSAI, and GST.
Paswan noted that the scheme, originally launched in 2020, has been extended until September 2026, and the government is actively considering the launch of PMFME 2.0 with suitable modifications to attract greater investment and expand its reach.
He also acknowledged the strong performance of Bihar, Maharashtra, Uttar Pradesh, Tamil Nadu, and Madhya Pradesh, which have emerged as leading states in implementing the scheme.
Emphasising the strategic importance of food processing, Paswan said the sector has the potential to address three critical challenges simultaneously—enhancing farmers’ incomes, reducing post-harvest losses, and generating employment. He also urged food businesses to maintain high quality standards while countering misconceptions that all processed foods are unhealthy.
Food Processing Secretary A. P. Das Joshi said the majority of PMFME-supported enterprises are located in rural areas, where they are helping reduce wastage of agricultural produce and create local value addition.
Joint Secretary Devesh Deval said the scheme provides comprehensive support beyond financial assistance, including training, technical handholding, branding, marketing, and market linkages to help micro enterprises become sustainable businesses.
The Ministry further stated that over 4.18 lakh Self-Help Group (SHG) members have benefited from seed capital assistance under the scheme, while more than 1.76 lakh beneficiaries have received training, 77% of whom are women.
During the event, Paswan felicitated the two lakhth beneficiary, Inderjeet Singh of Ranchi, Jharkhand, by presenting him with a sanction letter and certificate under the scheme.
Under PMFME, individual micro food processing enterprises are eligible for a 35% credit-linked subsidy of up to ₹10 lakh for setting up or upgrading units. The scheme also provides a 35% subsidy of up to ₹3 crore for common infrastructure developed by Farmer Producer Organisations (FPOs), Farmer Producer Companies (FPCs), and Self-Help Groups (SHGs). Additionally, ₹40,000 in seed capital is provided to eligible SHG members engaged in food processing to support working capital and the purchase of small equipment.
Industry Perspective
The PMFME scheme has emerged as one of India’s flagship initiatives for formalising and modernising the micro food processing sector. By promoting entrepreneurship, improving access to finance, encouraging value addition, and strengthening rural food processing infrastructure, the programme is playing a significant role in boosting farmers’ incomes, reducing food losses, and expanding employment opportunities across the agri-food value chain.
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