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Govt highlights achievements in empowering Micro Food Processing Enterprises, women entrepreneurs & rural livelihoods

Published: May 23, 2026

By TIOLCorplaws News Service

NEW DELHI, MAY 23, 2026: Mr Devesh Deval, Joint Secretary, Ministry of Food Processing Industries, addressed a media interaction at Panchsheel Bhawan, New Delhi regarding the implementation and achievements of the Pradhan Mantri Formalisation of Micro Food Processing Enterprises (PMFME) Scheme. During the interaction, the Ministry highlighted the scheme's growing impact on entrepreneurship, rural livelihoods, women-led enterprises and market integration of micro food processing units.

The PMFME Scheme was launched by the Government of India in 2020 under the Ministry of Food Processing Industries as part of the Aatmanirbhar Bharat Abhiyan. The scheme was conceptualised to address the challenges faced by India's unorganised micro food processing sector, which constitutes a significant share of the country's food processing industry ( The unorganized food processing sector in the country comprises nearly 25 lakh food processing enterprises which are unregistered and informal ) but has historically faced constraints related to access to credit, modern technology, branding, packaging, quality standards and organised market linkages. Increasing food processing levels has been recognized as critical for reducing wastage, improving farmers' income realization, and generating employment. However, dedicated institutional support for modernization and scaling up of micro food processing enterprises remained limited. Accordingly, the centrally sponsored scheme was specifically designed to bridge the gaps by addressing the challenges faced by micro-enterprises while leveraging the potential of groups and cooperatives to drive upgradation, formalization, and sustainable growth of the sector. Therefore, PMFME, the centrally sponsored scheme, with an outlay of Rs. 10,000 crore, was approved for implementation during 2020-21 to 2024-25 and has been extended till September 2026.

The Scheme also operationalizes the One District One Product (ODOP) approach, enabling economies of scale in procurement, common services, and market linkage, thereby strengthening the rural food processing ecosystem. The scheme has so far identified 137 unique products across 726 districts in 35 States and Union Territories, ensuring that traditional and indigenous products receive focused support and market visibility.

To realise the objectives, The Ministry is implementing the scheme in partnership with the State/ UT Governments for the following financial, technical and business support services for setting up and upgradation of micro food processing enterprises.

Key Components of PMFME Scheme

- Credit-Linked Subsidy: 35% Subsidy for Individual Micro Food Processing Enterprises (Maximum Rs.10 lakh) to set up or upgrade their individual micro food processing enterprises.

- 35% Credit-linked Subsidy for Farmer Producer Organisation (FPO), Farmer Producer Company (FPC), Self Help Group (SHG), etc. to set up or upgrade Common Infrastructure (Maximum Rs.3 Crore).

- Seed Capital @ Rs. 40,000/- per Self Help Group (SHG) member engaged in food processing for working capital and purchase of small tools. 

- Capacity Building:   provides structured training, including EDP training for individual and group applicants and training for SHG seed capital beneficiaries engaged in micro food processing.

- Incubation Centres: Establishment and strengthening of Common Incubation Centre, to function as local hubs for processing, training, testing and entrepreneurship development.

- Branding & Marketing: 50% financial grant for Branding and Marketing Support to groups of FPOs/SHGs/Cooperatives/Regional - State level SPV/ State Agencies (like SRLM or State level Departments) to develop and promote their existing or proposed brands. Support for ODOP brands in trademark registration, product standardization, packaging material, e-commerce and trade promotion.

- Handholding Support: Dedicated state and district-level resource persons have been deployed to guide applicants through every stage of formalization—from registration, submission of application, compliances, and standardization.

As on today, a total of 1,96,270 individual micro food processing enterprises have been supported under the Credit Linked Subsidy component with more than 40% of beneficiaries being women entrepreneurs. Seed Capital assistance has been approved for more than 4 lakhs SHG members. The scheme has also covered 1,72,870 beneficiaries and other stakeholders under capacity building programme.

The Ministry informed that 80 incubation centres have been approved under the scheme, of which 31 centres have already been commissioned to facilitate technology adoption, innovation and entrepreneurship development which will benefit thousands of producers and entrepreneurs collectively.

Under Branding and Marketing support, 32 proposals and 40 ODOP brands have been approved, resulting in the launch of more than 200 food products including millet-based products, GI-tagged items, pickles, makhana products, spices, dairy and bakery products. A total of 1,164 micro enterprises have directly benefited from branding and marketing assistance.

The Ministry further highlighted that MoFPI has also signed an MoU with the Government e-Marketplace (GeM) o facilitate on boarding and market assistance for PMFME-supported enterprises on the GeM portal.

Addressing the media, the Joint Secretary, FPI  stated:

PMFME Scheme has emerged as a key intervention for strengthening India's micro food processing ecosystem by enabling access to finance, formalisation, training, branding, marketing and modern market linkages for micro enterprises. The scheme is significantly empowering women entrepreneurs, Self Help Groups and rural enterprises, while also contributing to employment generation for around 5,88,810 individual enterprises across the food processing value chain and strengthening local rural economies.

The Ministry also informed that PMFME beneficiaries have actively participated in national and international exhibitions including World Food India, AAHAR and SIAL India, enabling enhanced market access and product visibility. During the World Food India 2025, Credit-linked subsidy amounting to Rs. 778 crores was released to 26,000 beneficiaries by the Hon'ble Prime Minister. More than 100 PMFME beneficiary stalls participated during the event, while around 250 PMFME products were showcased through QR-code enabled digital displays linked to the PMFME Marketplace. Through initiatives like these, the Ministry provides micro food processing enterprises with opportunities to showcase their products, facilitates business-to-business (B2B) meetings for domestic and global market linkages. The scheme's benefits and impact are evident in the numerous success stories of the beneficiaries, which the Ministry regularly shares on its website and social media platforms.

The Ministry further highlighted that the PMFME Scheme has led to a marked increase in the formalisation of micro food processing enterprises across the country, with a growing number of entrepreneurs obtaining FSSAI registration and adopting improved food safety, quality and packaging standards. The scheme has also contributed significantly to local employment generation, supporting livelihood opportunities for around 5,88,810 individuals across the food processing value chain. By strengthening processing, preservation and value addition infrastructure at the grassroots level, the scheme has helped reduce post-harvest losses, enhance income opportunities for rural entrepreneurs and stimulate local economic activity. The Ministry informed that PMFME Scheme continues to play a vital role in empowering micro food processing enterprises, particularly women-led and community-based enterprises, thereby strengthening rural economies through sustainable and inclusive entrepreneurship.

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