PM Formalization of Micro Food Processing Enterprises Scheme

• The Food Processing Industry in India is known globally for being the largest producer, consumer and exporter of spices, second largest producer of food grains, fruits and vegetables and largest producer of milk in the world.
• With initiatives like Make in India and the Atmanirbhar Bharat Abhiyan, the government has decided to further give a boost to the micro food processing units in the country. Taking inspiration from the “Vocal for Local” campaign initiated by the Hon’ble Prime Minister Shri Narendra Modi, the PM Formalization of Micro Food Processing Enterprises (PM FME) Scheme was launched on 29th June 2020.

Sources: 1, 2

The PM FME scheme is a central sector scheme with an outlay of INR 10,000 cr to support the unorganized micro food processing units in the country. The objectives of the scheme are:

• Formalization of micro food processing units
• Financial assistance to individuals for up-gradation of units
• Training and technical knowledge
• Financial assistance to groups for the common infrastructure
• Branding and marketing support
• Support and assistance to avail loans and prepare detailed project reports (DPRs)

>> Read more about the PM FME scheme

Sources: 1, 2, 3

The PM FME scheme will provide financial assistance to groups and individuals for the following activities:

• For up-gradation of individual Micro Food Processing Units
• For capital investment along the value chain
• Seed Capital for the purchase of tools and working capital to Self Help Groups
• For common infrastructure development such as cold storage and warehouses

>> Read more about the PM FME scheme

Sources: 1

• The PM FME scheme has adopted the One District One Product approach from the ODOP Programme launched by the Uttar Pradesh (UP) government in 2018. The idea of this ODOP Programme was to create product-specific traditional industrial hubs across 75 districts of UP.

>> Read more about ODOP Programme

• The PM FME scheme would give emphasis to units and groups following the ODOP approach. Various states in the country will be required to identify one product per district based on existing clusters and the availability of raw material. Assistance in the form of common infrastructure facilities and branding & marketing support will be preferably given to micro food processing enterprises following the ODOP approach. However, other existing units would also be supported.

>> Read more about the PM FME scheme

Sources: 1,2