PM Formalisation of Micro Food Processing Enterprises (PMFME) Scheme surpassed 2 lakh credit-linked beneficiaries | Current Affairs | Vision IAS

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In Summary

  • PMFME Scheme exceeded 2 lakh credit-linked beneficiaries, with over ₹20,300 crore invested.
  • Nearly 90% beneficiaries are first-generation entrepreneurs, 44% women, and 75,000+ enterprises formalized.
  • Launched in 2020 under Atmanirbhar Bharat Abhiyaan, it supports micro food processing enterprises via credit-linked subsidy and ODOP approach.

In Summary

PM Formalisation of Micro Food Processing Enterprises (PMFME) Scheme surpassed 2 lakh credit-linked beneficiaries 

Over 2 lakh micro food processing enterprises received credit-linked assistance, leveraging ₹20,300+ crore in investments.

  • Nearly 90% beneficiaries are first-generation entrepreneurs, 44% are women, and 75,000+ enterprises have been formalised through Udyam, FSSAI and GST registrations.

About PMFME Scheme

  • Launched in 2020 under the Atmanirbhar Bharat Abhiyaan.
  • Type: Centrally Sponsored Scheme (2020–21 to 2025–26) with an outlay of ₹10,000 crore.
  • Ministry: Ministry of Food Processing Industries (MoFPI)
  • Objective: Formalise and enhance the competitiveness of micro food processing enterprises through financial, technical and business support.
  • Key Features:
    • Credit-linked subsidy:35% of eligible project cost (maximum ₹10 lakh per unit) for upgradation/setting up of enterprises.
    • ODOP (One District One Product) approach: Promotes district-specific products through value addition, branding and market linkages.
    • Support to SHGs, FPOs & Cooperatives: Seed capital for SHGs, credit support, capacity building and group-based enterprises.
    • Branding & Marketing Support: Common branding, packaging, quality certification and market linkages for ODOP products.
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FPOs

Farmer Producer Organizations are organizations formed by farmers, for farmers, to collectively engage in activities such as procurement of inputs, marketing of produce, processing, and value addition.

SHGs

Self-Help Groups. These groups are proposed as a means to promote self-employment and ensure sustainable livelihood opportunities for transgender individuals, contributing to their economic empowerment.

GST

Goods and Services Tax. An indirect tax levied on the supply of goods and services, implemented in India to simplify the tax structure and create a unified national market.

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