(THE GIST OF PIB) Pradhan Mantri Formalisation of Micro Food Processing Enterprises (PMFME) Scheme

(MAY-2025)

Bihar secured first position in the country for successfully implementing the Pradhan Mantri Formalisation of Micro Food Processing Enterprises(PMFME) scheme in the financial year 2024-25, said the industries minister recently.

Launched on June 29, 2020, PMFMPE is a Centrally Sponsored Scheme by the Ministry of Food Processing Industries.
It is designed to address the challenges faced by micro-enterprises and to tap the potential of groups and cooperatives to support the upgradation and formalization of these enterprises.
Objectives: To build the capability of microenterprises to enable:
Increased access to credit by existing micro food processing entrepreneurs, FPOs, self-help groups, and co-operatives.
Integration with an organized supply chain by strengthening branding & marketing.
Support for the transition of existing 200,000 enterprises into a formal framework.
Increased access to common services like common processing facilities, laboratories, storage, packaging, marketing, and incubation services.
Strengthening of institutions, research, and training in the food processing sector; and
Increased access for enterprises to professional and technical support.

Outlay:

The scheme envisages an outlay of ₹ 10,000 crores over a period of five years from 2020-21 to 2024-25.
The expenditure under the scheme would be shared in a 60:40 ratio between Central and State Governments, in a 90:10 ratio with the Northeastern and the Himalayan States, a 60:40 ratio with UTs with the legislature, and 100% by the Center for other UTs.

Coverage:

Under the scheme, 2,00,000 micro food processing units will be directly assisted with credit-linked subsidies.
Adequate, supportive common infrastructure and institutional architecture will be supported to accelerate the growth of the sector.

Courtesy: PIB

UPSC 2025