PMFME Scheme List, A vast range of food items are served by the Indian food processing sector. Approximately 25 lakh food processing facilities make up our nation’s unorganized food processing industry, which accounts for 74% of all food processing jobs. For a very long period, these unorganized sectors have faced several difficulties. To address this issue, the Ministry of Food Processing Industry (MoFPI) of the Indian government launched the PMFME initiative. Learn the PMFME complete form, eligibility requirements, perks, and other important information about this program by reading on.
Contents
PMFME Scheme Details
PMFME is the full name of the Pradhan Mantri Formalization of Micro Food Processing Enterprises initiative. It serves as a one-stop shop for formalizing the Indian food industry. The Ministry of Food Processing oversees this initiative, which aims to further the “Vocal for Local” campaign.
The PMFME program was launched in 2020 under the Atmanirbhar Bharat Abhiyaan and operated for five years, from 2020–21 to 2024–25. With an emphasis on assisting Farmer Producer Organizations (FPOs), producers cooperatives, and Self-Help Groups (SHGs) involved in the agri-food processing industry, it seeks to formalize and expand the number of micro-enterprises currently operating in the unorganized food processing segment.
It is a five-year, centrally supported program that will cost Rs. 10,000 crores. In a 60:40 split, the federal government and the state governments will split the costs. The federal government’s share in the state governments in the northeastern and Himalayan states is 90:10.
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One District One Product (ODOP) Under the PMFME Scheme
To expand the scope of acquiring inputs, shared services, and product marketing, the PMFME plan has embraced the One District One Product (ODOP) concept. It seeks to offer the structure for coordinating value chain growth and support infrastructure. The states will select and market the district’s food items under the ODOP. The selected food item might be a single, primarily locally produced food item, a cereal-based product, or a perishable crop.
ODOP includes items such as fisheries, mangos, millet-based products, potatoes, tomatoes, litchi, poultry, beef, and animal feed. Additionally, this initiative would promote traditional Indian herbal goods such as turmeric, amla, honey, and minor forest products in tribal areas. Under the ODOP method, good branding, marketing, and infrastructural facilities would be provided.
PMFME Scheme List
The following elements of the food processing industry are the scheme’s primary focus:
Common Infrastructure Development
Under this scheme, all FPOs, Farmer Producer Companies (FPCs), cooperatives, SHGs and their affiliates, private companies, and public entities would get assistance in constructing shared infrastructure.
This mostly comprises assistance with the construction of labs, cold storage facilities, warehouses, and incubation centers. Factors such as the viability gap, the absence of private investment, the complexity of the value chain, and the sector’s overall advantages are taken into account when evaluating a project’s eligibility. For capital investment, there is also a credit-linked capital subsidy available.
Branding and Marketing
To help FPOs, Cooperatives, SHGs, or a Special Purpose Vehicle (SPV) of a micro food processing firm sell their processed food products, the PMFME program provides branding and marketing assistance. This facilitates the creation of uniform packaging, branding, standardization, quality control, and adherence to food safety regulations.
Support for branding and marketing is handled by the Tribal Cooperative Marketing Federation of India (TRIFED) and the National Agriculture Cooperative Marketing Federation of India (NAFED). The State Nodal Agency would provide up to Rs. 5 lakhs in support to the food processing businesses in order to create the Detailed Project Report (DPR) for marketing and branding proposals.
Capacity Building and Research
A key component of turning any disorganized unit into an organized one is training. Grantees and organizations under the PMFME will participate in training to develop their abilities.
Training and capacity building are examined by two national organizations: the Indian Institute of Food Processing Technology and the National Institute for Food Technology Entrepreneurship and Management. All required training is provided by these two organizations as well as state-level technological institutes selected by the state government.
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Support to Food Processing Units
Unorganized micro food processing businesses and those involved in micro food processing are eligible for funding under this program to expand or upgrade their equipment.
Seed Capital for SHGs
Members of SHGs involved in food processing can acquire modest tools and working capital with seed money provided by the PMFME initiative. The federation level of SHGs will supply the seed cash, which will then be made available to the members as a loan through SHG.
PMFME Scheme Subsidy
The following subsidies will be offered by the government under the PMFME scheme:
- A credit-linked capital subsidy of up to Rs. 3 crore, or 35% of the qualifying project cost (Rs. 10 crore), for SHG, FPO, and cooperative capital expenditures and shared infrastructure.
- 50% of total costs are allocated to marketing and branding.
- An initial investment of Rs. 40,000 per SHG member, up to a maximum of Rs. 4 lakhs per SHG, is required for operating capital and the acquisition of minor tools.
- To upgrade or establish new units, individuals, proprietorships, partnerships, FPOs, NGOs, cooperatives, SHGs, or private limited companies can get a credit-linked capital subsidy of up to Rs. 10 lakhs per unit, or 35% of the qualifying project expenses.
PMFME Scheme Benefits
- With credit-linked subsidies, it covers almost two lakh micro food processing facilities.
- Individual units will get funding under this program to upgrade their food processing facilities.
- Through technical knowledge transfer, support services, and skill training, this program aims to increase the ability of entrepreneurs.
- With the aid of marketing, the program seeks to increase integration with organized supply chains.
- It helps already-existing businesses transition into official organizations and register in accordance with the legal framework.
PMFME Scheme Eligibility Criteria
Different qualifying requirements must be fulfilled for various forms of support. They are as follows:
Common Infrastructure Development
- It is recommended that all FPOs, cooperatives, and SHGs process ODOP output for a minimum of three years.
- The project cost should not exceed the current revenue, and FPOs and cooperatives should have a minimum turnover of Rs. 1 crore.
- The internal resources of SHGs, cooperatives, and FPOs should be sufficient to cover 10% of the project cost plus working capital margin funds.
Branding and Marketing
- The suggestion for branding and marketing ought to be relevant to ODOP.
- The product should have a minimum turnover of Rs. 5 crore.
- The consumer should purchase the finished product in a retail package.
- Both the manufacturers and the goods must be scalable to higher levels.
- For promotion, the organization should possess managerial and entrepreneurial skills.
Capacity Building and Research
- Individual departments and organizations are given financial assistance for major projects.
- Other districts’ current groups and units that process ODOP goods.
- Organizations that get assistance with branding and marketing.
Support to Food Processing Units
- Proprietors of the business, either individuals or partnership entities.
- Currently operating micro food production facilities.
- The resource person confirmed the existence of existing microfood manufacturing facilities.
- The applicant must be older than eighteen and have completed at least eighteen standard passes.
- Financial aid is only available to one member of a household. The individual, spouse, and kids would make up the family.
Seed Capital for SHGs
- Only SHG members who now work in the food processing industry.
- SHG members must promise the SHG federation and SHG that they would use the funds for working capital and the acquisition of modest tools.
PMFME Application Form
The PMFME program is available for both online and offline applications. To make use of the scheme’s benefits, one can choose from four distinct kinds of application forms. For offline applications, there are distinct forms for SHGs, cooperative societies, FPCs, and shared infrastructure.
- This is the Farmer Producer Companies form:
- Examine the form that applies to cooperative societies:
- Let’s examine the Common Infrastructure form template:
- Please review the Self-Help Groups application form:
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PMFME Online Application
If you want to apply online for the PMFME scheme, follow these steps:
- Check out the PMFME’s official webpage.
- Click Applicant Registration after selecting Login.
- Click Register after entering the necessary information on the application form.
- By selecting the Login and Applicant Login options, you may access the PMFME website.
- Click Submit after entering your password and User ID.
- On the dashboard, select the Apply Online option.
- Complete the relevant form with all of your information, then click Submit.
Faq’s
Q. The PMFME plan is what?
Ans: The Pradhan Mantri Formalization of Micro Food Processing Enterprises (PMFME) program provides all unorganized micro food processing businesses with financial, business, and technical assistance.
Q. For whom is the PMFME plan applicable?
Ans: Current micro food processing enterprises, cooperatives, Farmer Producer Organizations (FPOs), and Self Help Groups (SHGs) are all eligible for the PMFME program.
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