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agriculture // SCHEME GUIDE Information last reviewed: March 2026

PM Formalisation of Micro Food Processing Enterprises (PMFME)

Ministry: Ministry of Food Processing Industries (MoFPI)Agency: State Nodal Agencies (SNA) & National Institute of Food Technology (NIFTEM)Mode: National MIS Portal (pmfme.mofpi.gov.in) & DRP Support

Quick Scheme Parameters

Capital Subsidy Rate35% of Eligible Project Cost
Max Subsidy Ceiling₹10,00,000 (₹10 Lakhs)
SHG Seed Capital₹40,000 per Member
Handholding SupportFree assistance by District Resource Persons
Focus FrameworkOne District One Product (ODOP)

Who is this scheme for?

  • ●Existing Micro Food Processors
  • ●SHG Members in Food Processing
  • ●Farmer Producer Organizations (FPOs)
  • ●Producer Cooperatives
  • ●ODOP Commodity Units
Territory: Central (All India)
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SEVA is an independent information directory and is not affiliated with or operated by the Government of India or any government department. Scheme eligibility, benefits, deadlines and application requirements may change. Always verify information through the relevant official government source before applying.

01 // What is PMFME Micro Food Processing Scheme? (Overview)

The PM Formalisation of Micro Food Processing Enterprises (PMFME) scheme provides financial, technical, and business support for the upgradation of existing unorganized micro food processing units and the creation of common infrastructure under the One District One Product (ODOP) framework.

Who Can Apply & Eligibility Requirements

  • ✓Existing individual micro food processing enterprises with operations
  • ✓New units involved in One District One Product (ODOP) crops/commodities
  • ✓Farmer Producer Organizations (FPOs), Producer Cooperatives, and Self Help Groups (SHGs)
  • ✓Enterprise must possess valid Udyam and FSSAI basic registration

Who is NOT Eligible?

  • ✕Large and Medium scale food processing units
  • ✕Units operating without statutory food safety (FSSAI) compliance
  • ✕Non-food manufacturing activities

02 // Benefits & Financial Assistance / Subsidy Structure

Financial Benefit Summary

Credit-linked capital subsidy of 35% of eligible project costs with a maximum ceiling of ₹10 Lakhs per micro enterprise, plus seed capital of ₹40,000 per SHG member.

Beneficiary / Project TierGovernment Subsidy / CoverKey Terms & Conditions
Individual Micro Food Processing Units35% Credit-Linked SubsidyMaximum subsidy ceiling of ₹10,00,000 per unit. Beneficiary contributes 10% min, remaining funded via bank term loan.
Farmer Producer Organizations (FPOs) & Cooperatives35% Capital SubsidyFor establishing common processing facilities, sorting/grading lines, and testing laboratories.
Self Help Group (SHG) Seed Capital₹40,000 per MemberWorking capital and small tool purchases for SHG members engaged in food processing.
Pre-Disbursement Vendor Diligence

Getting this subsidy? Verify your food processing and packaging machinery supplier before you pay them.

Subsidy disbursements under PM Formalisation of Micro Food Processing Enterprises (PMFME) frequently get delayed or rejected by nodal banks if a supplier's quotation, GST certificate, bank beneficiary, or invoice details don't match. Cross-check your supplier documentation with AI in 30 seconds before releasing advances.

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03 // Required Documents Checklist

Aadhaar Card and PAN Card of Promoters
Udyam Registration Certificate
FSSAI Food License or Basic Registration
Bank Statement (Last 6 Months)
Quotation for food processing machinery and equipment from certified vendors
Brief Project Report with cost-benefit analysis

04 // How to Apply (Step-by-Step Application Process)

1

Register on National PMFME MIS Portal

Visit pmfme.mofpi.gov.in and click on "Apply for Individual Enterprise Upgradation".

2

Select ODOP Product & District

Choose your district One District One Product (ODOP) category and enter existing turnover and proposed machinery details.

3

Assistance by District Resource Person (DRP)

A certified District Resource Person (DRP) assists you free of cost in preparing your bankable DPR and FSSAI registration.

4

Bank Loan Sanction & Subsidy Credit

The bank sanctions the term loan and the 35% subsidy is transferred into your bank Subsidy Reserve Fund account.

05 // Official Government Sources & Application Portals

06 // Frequently Asked Questions About PMFME Micro Food Processing Scheme

What is the One District One Product (ODOP) approach in PMFME?

Under ODOP, each district across India specializes in a specific agricultural or processed food commodity (such as Mango processing in Ratnagiri or Mustard Oil in Rajasthan). Units processing the designated ODOP commodity receive priority approval and branding assistance.

Do applicants have to pay fees for District Resource Person (DRP) support?

No. Handholding support by certified District Resource Persons (DRPs) for preparing Detailed Project Reports and securing bank loans is fully funded by the Ministry and is completely free for entrepreneurs.

07 // Related Government Schemes

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