2 lakh micro food processing enterprises covered under credit-linked subsidy scheme ‘PMFME’: Government

Leh, India Jul 12, 2026 ALN: Food Processing Industries Minister Chirag Paswan announced that over 200,000 micro enterprises have received credit-linked subsidies under the PMFME scheme since its launch in 2020, facilitating the establishment of processing facilities with a combined investment of ₹20,300 crore.

The Pradhan Mantri Formalisation of Micro Food Processing Enterprises (PMFME) scheme was initiated as part of a broader strategy to enhance the food processing sector in India. This initiative aims to formalize the micro food processing units that play a crucial role in the country's agricultural ecosystem. The scheme is designed to provide financial assistance and support to micro and small food processing enterprises, which are often the backbone of rural economies.

The total subsidy amount provided so far under the PMFME scheme stands at around ₹6,000 crore, he added. This significant financial backing has enabled many entrepreneurs to set up their operations and contribute to the local economy. The scheme has also been instrumental in ensuring that these micro enterprises have access to necessary resources and infrastructure, which are vital for their growth and sustainability.

Paswan stated that the PMFME Scheme, which was initiated in 2020, has been extended until September this year, and the ministry is contemplating the launch of PMFME 2.0 with suitable modifications to attract further investments in this sector. This extension reflects the government's commitment to supporting the food processing industry and addressing the challenges faced by micro enterprises.

During an event, Paswan informed that loans have been sanctioned to more than 200,000 micro food processing enterprises over the last six years, marking a "historic milestone". The sheer number of beneficiaries illustrates the success of the PMFME scheme in reaching out to a vast segment of the population engaged in food processing.

When questioned about the subsidy provided under this scheme to date, he reiterated that it is approximately ₹6,000 crore. This amount has been crucial in enabling many small entrepreneurs to either start or enhance their food processing units, thereby contributing to the formal economy.

The minister highlighted that the scheme has leveraged project investments exceeding ₹20,300 crore while generating nearly 1.1 million direct and indirect employment opportunities. The job creation aspect of the PMFME scheme is particularly significant, as it not only provides livelihoods but also helps in reducing migration from rural areas to urban centers in search of work.

Elaborating further, Paswan mentioned that nearly 90% of beneficiaries are first-generation entrepreneurs, with 44% being women entrepreneurs. This statistic underscores the scheme's role in empowering individuals who may not have previously considered entrepreneurship as a viable option. Additionally, over 75,000 PMFME-supported enterprises have entered the formal economy through registrations such as Udyam Aadhaar, Udyam Assist, FSSAI, and GST, which are essential for legal recognition and operational support.

He emphasized that the achievement of 200,000 beneficiaries demonstrates that this vision is translating into measurable outcomes. The PMFME scheme has not only provided financial assistance but has also fostered an entrepreneurial spirit among the rural populace.

Paswan commended the performance of leading states, including Bihar, Maharashtra, Uttar Pradesh, Tamil Nadu, and Madhya Pradesh. These states have effectively utilized the PMFME scheme to enhance their local food processing capabilities, thereby contributing to the overall growth of the sector.

He noted the necessity to expand this scheme to cover more individuals and discussed the significant business opportunities within this sector. The food processing industry is vital for the Indian economy, as it can significantly reduce post-harvest losses, enhance farmers’ incomes, and create jobs.

According to him, food processing could address three major challenges: enhancing farmers’ income, creating jobs, and reducing wastage of farm produce. By processing agricultural products, farmers can receive better prices for their goods, which can lead to increased income and improved livelihoods.

The minister also stressed the importance of countering the false narrative that all processed food is detrimental and urged food businesses to maintain quality. This is crucial for building consumer trust and ensuring that processed foods contribute positively to health and nutrition.

Food Processing Secretary A P Das Joshi remarked that this scheme is inclusive, with most processing units located in rural India, contributing to the reduction of farm produce wastage. The focus on rural areas is significant, as it aligns with the government's broader objectives of rural development and poverty alleviation.

Devesh Deval, Joint Secretary in the ministry, underscored the significance of the PMFME scheme, which provides end-to-end support to micro food processing entrepreneurs, including financial assistance, training, branding, marketing, and market linkage. This comprehensive support system is crucial for the success of micro enterprises, which often lack the resources and knowledge to navigate the complexities of the food processing industry.

He noted that the scheme is not merely supporting enterprises; it is transforming livelihoods, strengthening local value chains, and creating sustainable employment opportunities across the country. The holistic approach of the PMFME scheme aims to create a robust ecosystem for food processing that benefits all stakeholders, from farmers to consumers.

The ministry highlighted that the scheme’s seed capital support has been availed by more than 418,000 Self Help Group members, with over 176,000 beneficiaries trained under the scheme, of whom 77% are women. This focus on women empowerment is particularly noteworthy, as it helps in bridging the gender gap in entrepreneurship and promotes inclusive growth.

During the event, Paswan honored the 200,000th beneficiary, Inderjeet Singh from Ranchi, Jharkhand, presenting him with the sanction letter and certificate. This recognition not only celebrates the individual’s achievement but also serves as an inspiration for others in the community to pursue their entrepreneurial dreams.

Under the PMFME, a 35% subsidy for individual micro food processing enterprises (up to ₹10 lakh) is being provided to establish or upgrade their operations. Furthermore, a 35% credit-linked subsidy is available for Farmer Producer Organizations (FPOs), Farmer Producer Companies (FPCs), Self Help Groups (SHGs), etc., to set up or upgrade common infrastructure (up to ₹3 crore). This financial framework is designed to encourage collaboration among small producers and enhance their collective bargaining power in the market.

In conclusion, the PMFME scheme represents a significant step towards formalizing the micro food processing sector in India. By providing financial assistance, training, and support, the government is not only fostering entrepreneurship but also addressing critical issues such as food wastage, farmer income, and rural employment. As the scheme evolves, it has the potential to create a more resilient and sustainable food processing ecosystem that benefits all stakeholders involved.