The PMFME scheme is a boon for you if you are planning a food business startup like pickle making, bakery, spice processing, dairy products, etc. Government support, training, and marketing assistance for small food businesses [India November 2018] This is a comprehensive blog where you will learn each and everything about the scheme like what is PMFME scheme, the benefits, eligibility, process, how to apply in step by step guide.
Overview Table: PMFME Scheme
| Particular | Details |
| Scheme Name | PMFME Scheme |
| Full Form | Pradhan Mantri Formalisation of Micro Food Processing Enterprises |
| Ministry | Ministry of Food Processing Industries |
| Launch Year | 2020 |
| Subsidy | 35% of project cost |
| Max Subsidy | ₹10 lakh (individuals) |
| Beneficiaries | Individuals, SHGs, FPOs, Cooperatives |
| Coverage | All India |
| Focus | Food processing businesses |
| Approach | One District One Product (ODOP) |
What is the PMFME Scheme?
It is a central government scheme launched under the Aatmanirbhar Bharat mission to provide access to financial assistance for small food processing units in India. A large number of food businesses in India are unorganized and they actually do not have access to finance, technology, and market opportunities. The purpose of this scheme is to formalize those businesses and grow those into profitable enterprises. Implemented by the ministry of food processing industries with the help of State Governments.
Main Objectives
- Support small food entrepreneurs
- Improve food processing quality
- Promote local products under ODOP
- Generate employment in rural areas
- Boost farm and small business profits
Read More: PMJAY Scheme : Complete Guide to Free Healthcare in India
Benefits of PMFME Scheme
This scheme is very beneficial for small entrepreneurs by all means.
1. Financial Assistance
They give 35% subsidy on the total project cost. It makes things a lot easier to start or grow a business, reducing your financial burden greatly.
2. Easy Access to Bank Loans
Under this scheme entrepreneurs can get credit facilities without heavy collateral requirement against bank loans.
3. Branding & Marketing Support
50% government support in branding and packaging, bringing your product to market.
4. Skill Development Training
Related companies increase production, they learn food safety, and business as well as quality.
5. Support for SHGs and Women
Aid to rural development is undertaken with a special focus on Self Help Groups and women entrepreneurs.
6. Promotion of Local Products (ODOP)
And district specific local products too become known across the nation and world with help of this One District One Product concept.
7. Employment Generation
The scheme also generates jobs in rural and semi-urban areas by supporting small businesses.
Key Features of PMFME Scheme
1. Credit-Linked Subsidy
It is indeed the heart of this scheme. The subsidy is conditional on a bank loan, so you have to take a loan first. Once the application is approved, the subsidy is duly deducted from the base of your loan, thus minimizing the amount of money you have to pay during the repayment period.
2. One District One Product (ODOP)
Every district is a hub for some product such as mango, spices, or dairy. This enhances the aspects of southern Ethiopia enhancing specialization, branding, and even export.
3. Support for Individuals & Groups
This scheme is not just for individuals. It is also SHG, FPO and cooperative inclusive, so benefits all types of entrepreneurs.
4. Seed Capital for SHGs
Seed capital (₹40,000/member in maximum) may be given to Self Help Groups to encourage users to purchase tools to handle this as well as manage working capital.
5. Common Infrastructure Development
The scheme helps in construction of cold storage and warehouses & Processing units and enhancing ultimate efficiency in the food Ao sector.
6. Capacity Building & Training
Modern processing, packing, hygiene, marketing, etc. are the simple procedures that are taught to the entrepreneurs.
7. Branding and Marketing Assistance
The government also assists in the design, labelling and promotion of products to help them reach a wider market.
How PMFME Scheme Works
This scheme operates in a step-wise process:
- You apply for a loan under the scheme,
- Bank evaluates your project
- Loan gets approved
- Government provides subsidy (35%)
- Business establishment / upgrade
No cash subsidy is provided, rather after the loan is approved and verified, the subsidy gets adjusted in the loan account.
Eligibility Criteria
For Individual Entrepreneurs
- Must be 18 years or above
- Should (Do they) small scale food processing
- Eligibility: Should have aadhaar and bank account
- Eligible only one worker per family
- Second, business has to be a micro company
For SHGs (Self Help Groups)
- Not less than50 acres must be involved in processing food
- Should have basic records
- Eligible for seed capital support
- For FPOs / Cooperatives
- Must be registered
- Should be in the food processing business
How to Apply for PMFME Scheme
Step 1: Visit Official Portal
Visit the official website of PMFME MOFPI.
Step 2: Register
Sign up with your mobile number and other information.
Step 3: Fill Application Form
Fill in the information for personal, business and project information.
Step 4: Upload Documents
- Aadhaar card
- Bank details
- Project report
- Business proof
Step 5: Submit Application
Submit your form online.
Step 6: Verification
Your application is scrutinized at district level.
Step 7: Bank Approval
Banks assess the feasibility and sanctioned loans.
Step 8: Subsidy Release
Subsidy accounts are credited post sanctioned verification.
Documents Required
- Aadhaar Card
- PAN Card
- Bank Passbook
- Business Plan / DPR
- Address Proof
- Business Registration (if any)
Tips to Get Approval Easily
- Prepare a strong project report
- Select ODOP product for your district
- Maintain proper documents
- Show clear profit potential
Conclusion
PmFme Scheme is among the Best Government schemes for Small Entrepreneurs in India It gives not only a glimpse of funding but also assistance in training, branding, and getting more market space. This scheme will help you cover your investment for starting a food processing business or expanding your business with more success rate. If planning and execution are correct, with the help of the PMFME scheme, you can create a profitable and sustainable business.
FAQs About PMFME scheme
1. What is the PMFME scheme in simple words?
This scheme is a government program that provides financial and technical support to small food processing businesses.
2. How much subsidy is given under the PMFME scheme?
You get 35% subsidy on project cost up to ₹10 lakh.
3. Who can apply for the PMFME scheme?
Individuals, SHGs, FPOs, and cooperatives involved in food processing can apply.
4. Is the PMFME scheme available in rural areas?
Yes, it is available across all rural and urban areas in India.
5. What is ODOP in the PMFME scheme?
ODOP means One District One Product, focusing on local products for better growth.
6. How to apply for the PMFME scheme online?
You can apply through the official PMFME MOFPI portal by filling out an online application form.
7. Is the PMFME scheme good for small business?
Yes, it is one of the best schemes for starting or expanding a small food business in India.
