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Farmers & AgricultureOfficial Info Verified
Pradhan Mantri Formalisation of Micro Food Processing Enterprises (PMFME) Scheme
Centrally sponsored flagship food-processing scheme by MoFPI offering a 35% credit-linked capital subsidy (up to ₹10 Lakh per individual unit), ₹40,000 seed capital per eligible SHG member, FPO/cooperative grants, common infrastructure support, and ODOP cluster development across West Bengal.
Department: Ministry of Food Processing Industries (MoFPI), Government of India / Department of Food Processing Industries & Horticulture, Government of West Bengal
Individual Capital Subsidy
35% of Cost
Credit-linked capital subsidy
Max Individual Ceiling
Up to ₹10 Lakh
Per eligible micro enterprise
SHG Seed Capital
₹40,000 / Member
For working capital & small tools
Minimum Own Equity
10% of Project
Promoter equity contribution
Language:
Scheme Overview
What is Pradhan Mantri Formalisation of Micro Food Processing Enterprises (PMFME) Scheme?
The Pradhan Mantri Formalisation of Micro Food Processing Enterprises (PMFME) Scheme is a landmark national initiative launched by the Ministry of Food Processing Industries (MoFPI), Government of India, under the Atmanirbhar Bharat Abhiyan. The original national framework was structured with an outlay of ₹10,000 Crore over 2020–21 to 2024–25 to directly support 2,00,000 micro food-processing units across the country. In 2026, MoFPI continues to operate the official PMFME online portal and active knowledge resources in coordination with State Nodal Agencies. For eligible individual micro food-processing enterprises, the scheme provides a credit-linked capital subsidy of 35% of the eligible project cost, up to a maximum ceiling of ₹10.00 Lakh per unit, requiring a minimum promoter contribution of 10% with the remainder financed through a commercial bank loan. Beyond individual units, PMFME provides substantial support to Farmer Producer Organizations (FPOs) and Producer Cooperatives (35% credit-linked capital grants for sorting, grading, and storage), ₹40,000 seed capital per eligible SHG member for working capital and small tools, 35% grants for Common Infrastructure, up to 50% support for regional branding and marketing, and technical training in FSSAI food safety and hygiene. The scheme strongly leverages the One District One Product (ODOP) approach to foster district-level agro-processing clusters throughout West Bengal.
Primary Purpose:To enhance the competitiveness and formalisation of unorganised micro food-processing enterprises, empower FPOs, SHGs, and cooperatives, and integrate localized agri-food value chains under the One District One Product (ODOP) framework.
Key Scheme Objectives
- Enable existing and new micro food-processing enterprises to upgrade technology and access formal bank credit.
- Facilitate formalisation through FSSAI registration/licensing, Udyam registration, and GST compliance.
- Support Farmer Producer Organizations (FPOs), SHGs, and Cooperatives along the complete food processing value chain.
- Promote specialized district agro-processing clusters through the One District One Product (ODOP) approach.
Financial Framework
Credit-Linked Financial Architecture & Multi-Pillar Support Structure
The PMFME Scheme operates on a credit-linked financial model where capital subsidies are integrated into commercial bank term loans across five distinct beneficiary categories.
Individual Subsidy Rate
35%
Individual Subsidy Cap
₹10.00 Lakh
SHG Member Seed Capital
₹40,000
Min Promoter Share
10%
5 Comprehensive Pillars of Support under PMFME
PMFME provides targeted support across 5 pillars: (1) Individual Units (35% subsidy up to ₹10L), (2) FPOs & Producer Cooperatives (35% credit-linked capital grants), (3) SHG Seed Capital (₹40,000 per member), (4) Common Infrastructure (35% grant for shared sorting/grading/cold storage), and (5) Branding & Marketing (up to 50% grant for ODOP/regional brands).
Financial Cost Structure & Bank Loan Integration Example:
Example A: ₹15 Lakh Individual Food Processing Upgradation
Eligible Project Cost = ₹15,00,000. 35% Subsidy = ₹5,25,000. Own Contribution (10% min) = ₹1,50,000. Bank Term Loan = ₹8,25,000.
Example B: ₹35 Lakh Individual Unit (Capped at ₹10 Lakh)
Eligible Project Cost = ₹35,00,000. 35% would be ₹12.25L, but Subsidy is CAPPED at ₹10,00,000. Own Contribution (10% min) = ₹3,50,000. Bank Term Loan = ₹21,50,000.
Example C: SHG Member Seed Capital (10 Members)
10 eligible SHG members engaged in micro food processing receive ₹40,000 each = ₹4,00,000 total seed capital disbursed to the SHG Federation for internal lending.
Important Scheme Distinctions:
PMFME is focused on micro food-processing enterprises. The ₹10 Lakh subsidy cap applies specifically to individual units, not all group components. It is distinct from MUDRA loans, farm mechanization (FSSM/CHC), and AIF infrastructure financing (though AIF interest subvention convergence may apply where eligible).
Agriculture Infrastructure Fund (AIF) Convergence
Eligible PMFME post-harvest and primary processing infrastructure projects can access an additional 3% interest subvention through formal convergence with the Agriculture Infrastructure Fund (AIF) framework.
Eligibility Guidelines
Who is Eligible to Apply?
Review standard qualifying conditions, income limits, and applicable waiver categories. Read our guide on understanding eligibility
Standard Eligibility Requirements
- Eligible Entities: Existing & aspiring Individual Micro Food Processing Entrepreneurs, SHGs, FPOs, and Producer Cooperatives
- Enterprises must be involved in processing of agri-food, horticulture, dairy, poultry, fishery, or minor forest produce
- Individual applicants must be at least 18 years of age and possess ownership/tenancy rights over the proposed unit premises
- Promoter must be willing to contribute minimum 10% of the project cost as equity and secure commercial bank loan sanction
- Enterprises should preferably align with the designated One District One Product (ODOP) of the district (non-ODOP existing units are also supported for upgradation)
Not Eligible:
- Enterprises engaged in pure trading, wholesale/retail distribution, or restaurants/catering without food processing activities.
- Large and medium scale food industries exceeding micro enterprise investment and turnover definitions.
- Applicants unable to obtain formal commercial bank term loan approval or defaulting on existing institutional credit.
35% Capital Subsidy
Credit-Linked Support Up to ₹10 Lakh for Individual Units
Ministry of Food Processing Industries, GoI
Financial capital subsidy for existing and new micro food-processing enterprises to upgrade machinery, packaging, and food safety standards.
One District One Product
ODOP Cluster Approach & SHG Seed Capital
Special focus on district-specific agro-produce and ₹40,000 seed capital per member for SHGs engaged in food processing.
Required Documentation
Commonly Required Documents
Exact document requirements can depend on the application type and applicant circumstances. View our common documents checklist
Standard
Detailed Project Report (DPR) & Capital Cost Estimates
Comprehensive business plan outlining processing capacity, machinery specifications, TFO, and financial viability.
Standard
Identity, Address & Age Proof of Promoter (Aadhaar / Voter ID / PAN)
Aadhaar Card, PAN Card, Voter ID, and passport-size photographs of the applicant or authorized signatories.
Standard
Land / Premises Ownership or Registered Lease Agreement
Proof of land ownership (Porcha/Deed) or valid registered lease agreement for the enterprise premises.
Standard
Bank Statements & Quotations for Plant and Machinery
Last 6 months bank statement, quotation from machinery manufacturers/suppliers, and civil cost estimates.
Conditional
FSSAI License / Registration & Udyam Registration (If existing)
Existing FSSAI certificate, Udyam registration, and trade license (mandatory for existing operational units).
Guidance: Ensure the applicant’s bank account is active and matches the beneficiary name exactly before institutional submission.
Application Process
How to Apply for Pradhan Mantri Formalisation of Micro Food Processing Enterprises (PMFME) Scheme
Step-by-step application and verification procedure based on official guidelines. Read our official portals guide
1
Register on Official PMFME National Portal
Visit the official PMFME portal (pmfme.mofpi.gov.in) and register as an Individual Entrepreneur, SHG, FPO, or Cooperative.
2
Prepare DPR with District Resource Person (DRP) Assistance
Prepare the Detailed Project Report (DPR) detailing machinery, processing workflow, and financial projections with free handholding from assigned DRPs.
3
Online Application Submission & District Level Scrutiny
Submit the completed application online. The District Level Committee (DLC) reviews the proposal and forwards eligible applications to the selected lending bank.
4
Bank Appraisal & Term Loan Sanction
The financing bank conducts credit appraisal, sanctions the term loan, and issues the official loan sanction letter.
5
Promoter Equity Deposit, Loan Disbursement & Subsidy Credit
The beneficiary deposits the 10% promoter equity. Following loan disbursement and machinery installation, the credit-linked subsidy is released into the loan account.
Payment Method
The 35% capital subsidy (up to ₹10.00 Lakh for individual units) is credit-linked and back-ended. Following bank loan sanction and promoter equity contribution, the subsidy is routed through the national/state nodal mechanism and credited directly to the beneficiary entrepreneur’s term loan account in the lending bank.
Original Scheme Framework Period:Original national outlay of ₹10,000 Cr covering FY 2020–21 to FY 2024–25 (2 Lakh micro units target)
Important to Know
PMFME provides a 35% credit-linked capital subsidy up to ₹10 Lakh specifically for eligible individual micro food-processing units.
The ₹10 Lakh subsidy ceiling applies to individual units; group projects (FPOs/Common Infrastructure) follow separate 35% grant ceilings.
SHGs engaged in food processing are eligible for Seed Capital of ₹40,000 per member for working capital and small tool purchases.
Promoter must contribute minimum 10% of the project cost as equity; balance is financed through a commercial bank loan.
District Resource Persons (DRPs) provide free handholding support for DPR preparation, portal registration, and bank linkage.
Frequently Asked Questions
Pradhan Mantri Formalisation of Micro Food Processing Enterprises (PMFME) Scheme Frequently Asked Questions
Common questions and answers regarding eligibility, benefits, documents, and application process for Pradhan Mantri Formalisation of Micro Food Processing Enterprises (PMFME) Scheme.
Pradhan Mantri Formalisation of Micro Food Processing Enterprises (PMFME) is a Government of India scheme by MoFPI providing financial, technical, and business support to micro food-processing enterprises, SHGs, and FPOs.
Sources Checked
All factual information on this page has been compiled and verified against official government portals, gazettes, and departmental guidelines.
Last Verified: 2026-08-19T00:00:00Z
Independent Platform Notice:
WBScheme is an independent information platform and is not the Government of India, Ministry of Food Processing Industries, or Government of West Bengal. PMFME eligibility, subsidy rates, project limits, application availability, ODOP requirements and implementation rules may change through Government notifications. Always verify the latest information through the official MoFPI and PMFME portal before applying.
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