PMFME Scheme: Subsidy, ODOP and Support for Micro Food Units
Why in the news
The Food Processing Industries Ministry held the PMFME Bazaar at India Habitat Centre, New Delhi, where micro food businesses from many regions showed and promoted their products. The event drew attention to how the scheme helps small units grow.
Key facts
- Launch: 29 June 2020, under Atmanirbhar Bharat Abhiyaan.
- Type: Centrally Sponsored Scheme; implemented by the Ministry of Food Processing Industries (MoFPI).
- Aim: help micro and informal food units become organised, competitive and financially stronger.
- Problems addressed: scarce finance, old technology, weak branding and poor market access.
Support components
| Component | Assistance | Limit or detail |
|---|---|---|
| Individual units | 35% credit-linked capital subsidy | Maximum ₹10 lakh per unit |
| Common infrastructure | 35% credit-linked capital subsidy | Maximum ₹3 crore; beneficiary puts in at least 10%, rest via bank loan |
| SHG seed capital | ₹40,000 per member | Maximum ₹4 lakh per SHG, routed through federations with SRLMs or SULMs |
| Branding and marketing | 50% financial assistance | For FPOs, SHGs, cooperatives and SPVs |
| Training | FPEDP programmes | Skills, business knowledge, entrepreneurship and management |
| DPR preparation | Up to ₹5 lakh | Provided through State Nodal Agencies |
Who can claim
- Individual units: proprietorships, partnerships, FPOs, NGOs, cooperatives, SHGs and private companies.
- Common infrastructure: FPOs, FPCs, cooperatives, SHGs and their federations, and government agencies; used for processing facilities, storage, value-chain assets or incubation centres.
One District One Product
- Promotes products that a district is known for, creating economies of scale in buying, processing, shared facilities, packaging and marketing.
- Approved for 713 districts across 35 States/UTs, covering 137 unique products.
Significance
- Helps entrepreneurs formalise, improve quality and cut wastage.
- Supports rural jobs and incomes, and the Atmanirbhar Bharat and Vocal for Local ideas.
- Strengthens the chain from farmers and producers to consumers.
Exam angle
- Nodal ministry: Food Processing Industries.
- Numbers: 35%, ₹10 lakh, ₹3 crore, ₹40,000, 50%, 713 districts.
- Related terms: ODOP, FPEDP, DPR, SRLM and SULM.