PMFME: Get Rs 10 Lakh Subsidy for Setting Up Food Processing Industry

Key Highlights

• Rs 10 lakh subsidy for setting up food processing units.
• 35% loan-linked capital subsidy on project cost.
• The scheme extended till March 31, 2026.
• Available to individuals, SHGs, FPOs, and co-operatives.
• Easy online registration and application process.

The government is actively working to boost farmers' income and create new jobs in rural areas. As part of these efforts, the "Pradhan Mantri Formalisation of Micro Food Processing Enterprises (PMFME)" scheme is helping people set up food processing industries. Recently, the government extended the PMFME scheme, offering a subsidy of up to Rs 10 lakh to those interested in starting their own business.

Also Read: Ladki Bahin Yojana Diwali Bonus 2024: Rs 3,000 for Women

Scheme Extended Until 2026

Madhya Pradesh has performed exceptionally well in implementing the PMFME scheme. Due to this success, the scheme’s tenure has been extended for one more year, with the new deadline being March 31, 2026. Madhya Pradesh’s Horticulture and Food Processing Minister, Narayan Singh Kushwaha, announced this extension, praising the state's progress. Initially set to run from 2020-21 to 2024-25, the scheme's extension ensures continued support for new food processing businesses. So far, 420 industrial units have been approved in Madhya Pradesh under the scheme.

Rs 10 Lakh Grant for Food Processing Units

Under PMFME, individuals and groups can receive a loan-linked capital subsidy at the rate of 35% of the project cost. The maximum subsidy offered is Rs 10 lakh per unit. To qualify, the beneficiary must contribute at least 10% of the project cost, with the remaining amount covered by a bank loan. This initiative is motivating the youth, especially those involved in agriculture and horticulture, to establish their own food processing industries.

Approval of 420 Projects in Madhya Pradesh

A committee led by the Chief Secretary reviews proposals for establishing food processing units before sending them to the Central Government. Out of 917 proposals received, 420 cases have been approved in Madhya Pradesh, making it a leading state in the country under this scheme. The PMFME scheme was launched on June 29, 2020, to support micro food production industries. The main objective is to address the challenges faced by these small enterprises and provide modern technology to help them grow and improve their processes and marketing.

Also Read: Pradhan Mantri Awas Yojana: Key Rules, Subsidy Details, and Housing Targets

Who is Eligible for the Loan and Subsidy?

Under the PMFME scheme, loans and subsidies are available for:

• Individuals starting a new unit
• Self Help Groups (SHGs)
• Farmer Producer Organisations (FPOs)
• Co-operative Societies
• Existing micro-food processing entrepreneurs

Businesses setting up new units will also benefit from the One District One Product (ODOP) initiative. Groups that establish common facilities like warehouses, cold storage, or laboratories can also receive benefits under this scheme.

How to Apply for PMFME Subsidy

If you are interested in applying for a loan and subsidy under the PMFME scheme, you can register on the official website:

1. Visit pmfme.mofpi.gov.in.
2. Click on “Register” on the homepage.
3. Fill in your details (name, address, mobile number, business information, loan requirement) and upload the necessary documents.
4. Review the form and submit it.
5. You will receive a registration number and password on your registered mobile number.
6. Log in with your credentials to apply for the loan and subsidy.
7. You can track the status of your application and get more details about the scheme on the website.

The PMFME scheme offers a great opportunity for individuals and groups to start or upgrade food processing businesses, with the added advantage of financial support from the government.

Also Read: Punjab CM, Union Minister Discuss Paddy Procurement for KMS 2024-25

CMV360 Says

The PMFME scheme provides a valuable opportunity for individuals and groups to set up or upgrade food processing industries with financial support from the government. With subsidies of up to Rs 10 lakh, extended timelines, and easy online registration, it promotes rural employment and boosts farmers' incomes, making it a key initiative for small entrepreneurs.