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PMFME scheme sanctions over 1.6 Lakh loans, fueling formalization of micro food sector
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Monday, 08 December, 2025, 16 : 00 PM [IST]
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Our Bureau, New Delhi
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The Pradhan Mantri Formalisation of Micro Food Processing Enterprises (PMFME) Scheme is achieving its core objective of enhancing the competitiveness and promoting the formalization of the unorganized segment of India’s food processing industry. The Ministry of Food Processing Industries (MoFPI) has reported significant milestones, demonstrating the scheme's nationwide impact in strengthening financial, technical, and market linkages for micro-entrepreneurs.
As of October 31, 2025, the scheme has delivered substantial support to ground-level enterprises:
• 1,62,744 loans have been successfully sanctioned for credit-linked capital subsidy, directly aiding individual and group micro-enterprises.
• Seed Capital of ?40,000 per member has been approved for 3,65,935 members of Self Help Groups (SHGs) to cover working capital and the purchase of small tools.
• To bolster the sector’s infrastructure, 101 proposals for Common Infrastructure Facilities and 76 Incubation Centres have been approved, ensuring shared access to crucial processing and testing resources.
The Central Government's financial commitment has seen a sharp escalation, reflecting the scheme's successful uptake. The Centre Share funds released to States/UTs surged from Rs 367.61 crore in 2020-21 to Rs 1,142.56 crore in 2024-25, demonstrating growing national support for the micro food processing sector.
The PMFME Scheme’s design is multi-faceted, offering financial assistance beyond direct subsidies:
• Individual/Group Support: Micro enterprises can avail a credit-linked capital subsidy of 35% of the eligible project cost, capped at Rs 10 lakh per unit.
• Common Infrastructure: Support for setting up common facilities is provided through a 35% credit-linked subsidy, up to Rs 3 Crore, primarily benefiting Farmer Producer Organisations (FPOs), SHGs, and Cooperatives, with an emphasis on making the facilities available for use by other units on a hiring basis.
• Branding & Marketing: A crucial grant of up to 50% is offered for branding and marketing activities, enabling small units to build recognition and access wider markets.
To ensure long-term viability, the scheme places a high priority on Capacity Building, offering Entrepreneurship Development Programs (EDP) tailored for the food processing industry and product-specific skilling. Coupled with extensive awareness campaigns across national and state levels, the PMFME scheme is successfully enhancing the competitiveness and promoting the formal, structured growth of food processing micro-enterprises nationwide.
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