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Farmers and rural entrepreneurs can get up to ₹10 lakh subsidy under PMFME to set up flour mills and other food processing units. Learn benefits and application details.
Subsidy up to ₹10 lakh.
35% financial assistance.
Covers flour mill, spices, dairy, and chips units.
SHGs are also eligible.
Easy application through the horticulture department.
The government is making strong efforts to support farmers, rural women, and small entrepreneurs in starting their own businesses. Under the Prime Minister Micro Food Industries Upgradation (PMFME) Scheme, a subsidy of 35% or up to ₹10 lakh is being offered for setting up food processing units like flour mills, spice mills, dairy units, papad, pickles, namkeen units, jaggery units, tomato ketchup, ginger powder, potato chips, and many other micro industries.
This initiative is becoming a major boost for rural entrepreneurship and is helping farmers earn more by processing their produce instead of selling it raw. Here is everything you need to know.
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According to the Deputy Director of the Horticulture Department, Chhindwara, the PMFME scheme is being run under the Self-Reliant India (Atmanirbhar Bharat) Campaign.
The main aim is to motivate:
Small and medium-scale farmers
Rural women
Self-help groups (SHGs)
Local micro-entrepreneurs
to set up their own food processing industries. With the growing demand for value-added products, food processing units can bring higher income and better opportunities for rural communities.
The PMFME scheme provides:
Technical guidance
Branding and marketing support
Financial assistance (subsidy)
If a farmer or entrepreneur wants to set up, expand, or upgrade a processing unit, the government supports a part of the total cost.
For example: If setting up a flour mill costs ₹25–30 lakh, the farmer can get a subsidy of ₹8–10 lakh, making it easier to start the business with reduced financial pressure.
Under the PMFME scheme, subsidies are available not only for machinery but also for:
Packaging
Grading
Modernizing equipment
Increasing production capacity
Setting up these units in rural areas also creates employment for local youth and helps farmers get better prices for their produce.
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The scheme covers a wide range of food processing businesses, including:
Flour mills
Spice mills
Potato chips units
Tomato ketchup units
Ginger powder and garlic powder
Papad, bari, namkeen, sweets
Dairy product units
Animal feed manufacturing units
Jaggery units
Juice factories
Many other micro food industries
With this support, farmers can double or even triple their income by selling processed products instead of raw crops.
Farmers and entrepreneurs can start the application process by contacting:
District Horticulture Department field staff
Rural Horticulture Extension Officer
Senior Horticulture Development Officer
District Horticulture Office
The department has also released contact numbers of District Resource Persons (DRPs) for more help:
Mr. Vivek Pal – 7869163254
Mr. Shishir Vishwakarma – 9685020404
These officials will guide applicants through technical details, required documents, eligibility, and setting up a processing unit. The process has been kept simple to ensure maximum participation.
Women’s Self-Help Groups (SHGs) are also eligible for the subsidy. By setting up food processing units, SHGs can strengthen their income, generate employment within the village, and support rural development.
The subsidy of up to ₹10 lakh is a golden opportunity for anyone looking to start a small processing business along with farming.
With food processing units, farmers can:
Increase their income
Sell branded and packaged products
Reach bigger markets
Add value to their crops
The PMFME scheme is becoming an essential tool for building strong rural entrepreneurship and supporting farmers to move towards profitable, value-added agriculture.
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The PMFME scheme is a strong opportunity for farmers, rural women, and small entrepreneurs to start profitable food processing units with government support. With a subsidy of up to ₹10 lakh, the scheme reduces financial pressure and encourages value addition in agriculture. It also helps generate rural employment and boosts local income. By taking advantage of this support, farmers can grow their businesses, improve earnings, and move toward self-reliance.