� PMFME
PM Formalization of Micro Food Processing Enterprises Scheme to support unorganized micro food units.
Overview
PMFME (Pradhan Mantri Formalization of Micro Food Processing Enterprises) is a landmark scheme launched by the Ministry of Food Processing Industries (MoFPI).
- Launch Date: 29th June 2020.
- Target: To provide financial, technical, and business support to micro food processing units in the unorganized sector.
- Vision: To promote the vision of 'Vocal for Local' and pave the way for global reach.
Key Features
The scheme is designed with a significant budget and a focused approach:
- Total Outlay: ₹10,000 Crore.
- Duration: 5 Years (from 2020-21 to 2024-25).
- Strategic Approach: ODOP (One District One Product). This means each district identifies one specific food product (e.g., Mango in one district, Tomato in another) to focus on for processing, branding, and marketing.
- Funding Pattern:
- 60:40 (Centre : State) for most states.
- 90:10 for North Eastern and Himalayan States.
Support for Individual Enterprises
Micro-entrepreneurs setting up or upgrading their food processing units receive direct financial aid:
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Overview
PMFME (Pradhan Mantri Formalization of Micro Food Processing Enterprises) is a landmark scheme launched by the Ministry of Food Processing Industries (MoFPI).
- Launch Date: 29th June 2020.
- Target: To provide financial, technical, and business support to micro food processing units in the unorganized sector.
- Vision: To promote the vision of 'Vocal for Local' and pave the way for global reach.
Key Features
The scheme is designed with a significant budget and a focused approach:
- Total Outlay: ₹10,000 Crore.
- Duration: 5 Years (from 2020-21 to 2024-25).
- Strategic Approach: ODOP (One District One Product). This means each district identifies one specific food product (e.g., Mango in one district, Tomato in another) to focus on for processing, branding, and marketing.
- Funding Pattern:
- 60:40 (Centre : State) for most states.
- 90:10 for North Eastern and Himalayan States.
Support for Individual Enterprises
Micro-entrepreneurs setting up or upgrading their food processing units receive direct financial aid:
- Credit-Linked Capital Subsidy:
- Beneficiaries can get a subsidy of 35% of the eligible project cost.
- Maximum Ceiling: The subsidy is capped at ₹10 Lakh per unit.
- Borrower Contribution: The beneficiary needs to contribute minimum 10% of the project cost, with the balance being the loan amount.
- Eligibility:
- Age: Above 18 years.
- Education: At least 8th Pass.
- Unit Size: Should employ roughly less than 10 workers.
- Family Rule: Only one person from one family is eligible.
Support for Self Help Groups (SHGs)
The scheme strongly empowers community groups:
- Seed Capital:
- SHG members involved in food processing get ₹40,000 per member as working capital for buying small tools and raw materials.
- Capital Investment:
- SHGs can avail a 35% Credit-Linked Grant for capital investment (Max ₹10 Lakh for individual members).
- Federation Level: SHG Federations can also get a 35% grant for setting up common infrastructure.
Credit Guarantee & Branding
- Credit Guarantee: Loans under this scheme are covered by NCGTC (National Credit Guarantee Trustee Company), protecting lenders against default.
- Marketing & Branding: Support is provided for developing a common brand for ODOP products at the district or state level to improve marketability.
Summary Cheat Sheet
| Parameter | Details |
|---|---|
| Full Name | PM Formalization of Micro Food Processing Enterprises |
| Launch Date | 29th June 2020 |
| Ministry | MoFPI (Food Processing Industries) |
| Total Outlay | ₹10,000 Crore (5 Years) |
| Duration | 2020-21 to 2024-25 |
| Vision | Vocal for Local |
| Strategy | ODOP (One District One Product) |
| Funding (General) | 60:40 (Centre:State) |
| Funding (NE/Himalayan) | 90:10 (Centre:State) |
| Capital Subsidy | 35% of project cost (max ₹10 Lakh) |
| Borrower Contribution | Minimum 10% |
| SHG Seed Capital | ₹40,000 per member |
| SHG Capital Grant | 35% Credit-Linked (max ₹10 Lakh) |
| Credit Guarantee | NCGTC (National Credit Guarantee Trustee Co.) |
| Age Eligibility | Above 18 years |
| Education | Minimum 8th Pass |
| Unit Size | Less than 10 workers |
| Family Limit | One person per family |
| Branding | Common brand for ODOP products |
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