The food-processing industry has always been an important contributor to India’s economy, providing not only jobs but also exports. It is with this vision that the Ministry of Food Processing Industries (MoFPI), under the Government of India, launched the PMFME Scheme in 2020 with the recognition of the sector’s potential. The object of the scheme is to lend support and assistance to micro food processing units, especially those operating in the unorganized sector, in the forms of finance, technical assistance, and business support.
The scheme works as a flagship program for the formalization of the sector so as to enhance competitiveness and grow capacity-building, technology upgradation, and access to credit and markets.
Objectives of PMFME Scheme
- Formalization of the Unorganized Sector: Encourage microfood units to register and operate formally.
- Increase Credit and Subsidy Access: Facilitate new technologies through economic credit.
- Promotion of One District One Product (ODOP): Support plenty of draw and branding of local raw material-based products.
- Skill Development and Capacity Building: Training of entrepreneurs, SHGs, and cooperatives.
- Market Access and Branding Support: Providing branding, packaging, and access to bigger markets for enterprises.
Subsidy and Financial Assistance under PMFME
The financial assistance to micro food processing enterprises is substantial under the scheme:
Credit-Linked Subsidy
- Individual Micro Units:
- 35% of the project cost (maximum ₹10 lakh per unit) is paid as a subsidy.
- The entrepreneur’s contribution should be at least 10% and the balance can be arranged by way of a loan from a bank.
- Self Help Groups (SHGs):
- Receives seed capital of ₹40,000 per member for working capital and small tools.
- For capital investment: 35% grants of project cost, maximum ceiling as per norms.
- Farmer Producer Organizations (FPOs)/Cooperatives:
- Upto ₹100 lakh assistance for capital investment and common infrastructure.
- Common Infrastructure:
- 35% financial support towards costs incurred for developing common processing facilities and incubation centers.
Other Support Services
- Brand development and marketing support for the ODOP products.
- Training and hand-holding through designated resource institutions.
- Support in Registration (FSSAI, GST, Udyam, etc.)
Who Can Apply?
- Existing unorganized micro food processing enterprises
- New entrepreneurs, SHG members, FPOs, and cooperatives
- Enterprises engaged in products based on ODOP
The enterprises must be involved in treating, processing, packaging, labeling, and sale of food products such as pickles, papads, jams, juices, spices, etc..
List of Project Ideas Eligible under PMFME Scheme
This is a carefully selected project idea list suitable to be benefited from the scheme based on One District One Product.
Fruit & Vegetable Based Projects
- Mango pulp, pickles, and jam
- Amla juice and candy
- Tomato ketchup and puree
- Banana chips
- Mixed fruit jam
Cereal & Pulse Based Products
- Flour milling (atta, besan)
- Poha (flattened rice)
- Papad and vermicelli making
- Millet-based snacks
- Ready-to-eat mixes
Spices & Masala Units
- Chili powder
- Coriander, turmeric processing
- Mixed spice powder unit
Dairy-Based Projects
- Paneer making
- Curd and flavored yogurt
- Ghee and butter processing
Meat & Fish Based Products
- Fish pickle
- Frozen meat storage and packaging
- Processed meat products
Bakery & Confectionery
- Bread, cake, and biscuits
- Traditional Indian sweets
- Chocolate and candy making
Beverages
- Herbal and flavored tea packaging
- Fruit-based beverages
- Bottled water/juice
Traditional Foods & Ready Meals
- Idli/dosa batter
- Ready-to-eat thali meals
- Sweets like laddus, barfis
Miscellaneous
- Honey processing
- Cold pressed edible oils
- Nut-based snacks
- Packaged chutneys and sauces
How Niir Project Consultancy Services (NPCS) Can Help Entrepreneurs
NIIR Project Consultancy Services (NPCS) is reputed as a very reliable company in India providing guidance for initiating as well as running successful businesses. NPCS offers a whole gamut of services under the PMFME Scheme, thereby ensuring smooth execution of the process from the very idea to the implementation.
🌟 Our Offerings Include:
- Project Identification & Selection
- Suggest viable project ideas based on location and ODOP
- Assess market potential and technical viability
Preparation of Detailed Project Reports (DPRs)
o Customized and bankable reports with:
- Project overview
- Market analysis
- Detailed manufacturing process
- Machinery & equipment list
- Raw material sourcing
- Cost of project and financials
- Profitability and ROI analysis
Loan and Subsidy Assistance
- Assistance in applying for credit-linked subsidy.
- Bank loan application support under PMFME guidelines.
- Documentation support from end to end
Technical Know-How
- Complete manufacturing process.
- Equipment sourcing and supplier information.
- Plant Layout & Infrastructure Planning
- Customized layout as per production flow and hygiene standards.
- Help in establishing common infrastructure for SHGs/FPOs.
Compliance & Licensing
- FSSAI, GST, MSME Udyam, and any other registration support.
- Branding, Packaging & Marketing Strategy
- Packaging design for retail.
- Marketing plan development for ODOP promotion and digital sales.
- Training and Capacity Building
- Partnering with training institutions to render support for skill development.
Conclusion
Consequently, this program exists to provide an opportunity for India’s micro food processing entrepreneurs to formalize their businesses into competitive and scalable enterprises. With attractive grants, financial support, and ODOP linkages, it encourages even the smallest of food enterprises to contribute to growth and employment creation, and national economy in the process.
NPCS is positioned to support every step of the journey from consultancy to a complete growth ecosystem for aspiring food processors. We help you from identifying suitable project ideas to access subsidies and operate profitable units, making sure your vision morphs into a successful venture.
💬 Get in Touch with NPCS Today!
📩 Email: npcs.ei@gmail.com | info@entrepreneurindia.co
📞 Phone: +91-9097075054
🌐 Website: www.entrepreneurindia.co | www.niir.org