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Govt Schemes

PMFME scheme: how micro food entrepreneurs get a subsidy to start a food processing unit

PMFME gives a credit-linked subsidy to individuals and groups who want to set up a micro food processing unit. Here is what you get, who qualifies, and how to apply through the official portal.

Order, military (AM 2015.20.28-1)
Representative photo: Order, military (AM 2015.20.28-1). Photo: Unknown / Wikimedia Commons, CC BY 4.0

Here is the whole scheme in one place: what you get, who qualifies, how to apply, and what to check.

At a glance
SchemePradhan Mantri Formalisation of Micro Food Processing Enterprises (PMFME)
MinistryMinistry of Food Processing Industries, Govt of India
BenefitCredit-linked capital subsidy on a food processing project, plus support for branding, training and marketing
Who can applyIndividual entrepreneurs, Self Help Groups and producer groups wanting to start a micro food unit
How it is givenSubsidy is linked with a bank loan, released after the project is sanctioned and set up
Apply atpmfme.mofpi.gov.in or your state's PMFME nodal agency
Cost to applyFree

Key points

  • Over 2 lakh micro enterprises have received support so far.
  • The subsidy is linked with a bank loan, so you need a bank loan too.
  • Around Rs 6,000 crore of subsidy has been given so far.
  • The scheme has been extended, and PMFME 2.0 is being planned.

So what exactly do you get under PMFME?

PMFME gives a credit-linked subsidy on your food processing project.

The subsidy is a share of the eligible project cost, and it is paid along with a bank loan.

Exact subsidy percentages and limits can change, so check the current figures on the official portal.

Support also includes Seed Capital for Self Help Groups, training, and help with branding and marketing.

Who can apply, and who cannot?

The scheme is for micro food processing units, which are small units with limited investment.

Individual entrepreneurs, Self Help Group members and producer groups can apply.

You need a project that fits the food processing list covered by the scheme.

Your unit must be a new one, or an existing micro unit that wants to formalise. Check the latest eligibility rules on the portal before you apply.

Why was the scheme started, and what is changing now?

PMFME was launched in 2020 by the Ministry of Food Processing Industries.

Its aim is to formalise micro food units, bring them into the registered economy, and create jobs.

The scheme has been extended till September this year, and the Ministry is planning PMFME 2.0 with changes.

Reports say an extension till 2029 is being considered, but this is not final yet.

What documents should you keep ready?

Keep your Aadhaar card and PAN card ready.

Keep your bank account details and a project report for your unit.

Keep proof of your address, your photograph, and details of your land or premises.

Registrations like Udyam Aadhaar, FSSAI and GST help, and many beneficiaries got these during the process.

How do you apply online, step by step?

Go to pmfme.mofpi.gov.in and register with your mobile number.

Fill in your personal details, your unit details, and your project plan.

Upload your documents and submit the application.

Your application then goes to your state nodal agency and the bank for approval.

How to apply for PMFME, step by step
  1. 1
    Register on the portalGo to pmfme.mofpi.gov.in and register with your mobile number.
  2. 2
    Fill in your detailsEnter your personal details, unit details and project plan.
  3. 3
    Upload and submitUpload your documents and submit the application.
  4. 4
    ApprovalYour state nodal agency and the bank review the application.

Graphic: News Anek, from the facts in this report

How do you check status, and what if the subsidy is delayed?

Log in to the portal and check your application status with your application number.

Subsidy is released only after the bank loan is sanctioned and the unit is set up.

If there is a delay, contact your state PMFME nodal agency or your lending bank first.

Never pay any agent or middleman for a PMFME application. Apply only through the official portal.

Frequently asked questions

Is PMFME still running?

Yes. The scheme has been extended, and PMFME 2.0 is being planned with changes. Check the official portal for the latest status.

Can women and Self Help Groups apply?

Yes. Women entrepreneurs and Self Help Group members are important beneficiaries, and the scheme has special support for them.

Is there a fee to apply?

No. Applying through the official portal is free. Avoid anyone who asks for a fee.

Do I need a bank loan?

Yes. The subsidy is credit-linked, so it works along with a bank loan for your project.

Who can help me with the application?

Your state PMFME nodal agency, your lending bank, and the Common Incubation Centres can guide you.