PMFME Scheme 2022 Eligibility, Online Application & Benefits

India has completed 75 years of independence, there is a substantial increase in the enterprises sector of India. Under the initiative of Atmanirbhar Bharat. The Indian government is opening gates for the growth of Micro Enterprises in food industries to connect with them through online portals and giving financial aid to the Beneficiaries. The PMFME Scheme is dedicated to enterprises of micro food processing. This scheme will help to increase their performance and growth. Today we are going to talk about the PMFME Online Registration and PMFME scheme details. Kindly read the article till the end.

What is the PMFME Scheme?

PMFME full form is the PM Formalisation of Micro Food Processing Enterprises Scheme launched by the government of India under the ministry of food processing and ministry of state, food processing industries with the objective of ‘Vocal For Local‘. The PMFME Scheme is an initiative under the Atmanirbhar Bharat Abhiyan to give opportunity for micro and small food entrepreneurs, FPOs/ SHGs/Co- operatives to benefit from the Rs. 10000 crores for Formalisation of about 2 lakh micro food processing Enterprises. Under the Scheme, food enterprises will be made self-reliant and promoted for manufacturing, local markets, and local supply chain.

Key Highlights

The objective of the PMFME Scheme 2022

Taking a major step toward the unorganized food processing industries and their challenges in performance and growth, the Ministry of Food Processing Industries (MoFPI) has launched the PM Formalisation of Micro Food Processing Enterprises Scheme (PM FME Scheme). The Objective under the Scheme are:

• To increase the capacity building of entrepreneurs through technical knowledge, skill training, and support services. 
• To increase the access to credit to existing Micro food processing entrepreneurs for a technological upgrade.
• To support Farmer’s Producer Organizations (FPOs), Self Help Groups (SHGs), and Food cooperatives to avail common services. 
• To support the transition of existing enterprises into a formal framework for Registration under a regulatory Framework.
• To increase the integration with organized supply chains by marketing. 

Background of PMFME Scheme

There are 25 lakhs food processing units in India contributing to 74% of employment in the food processing sector, about 66% of these industries are located in local areas, and about 80% of them are family-based enterprises supporting livelihood in rural households. These micro industries reduce the migration of rural people to urban areas and hence these food processing industries are found in larger numbers in rural areas. 

These units face many challenges which obstruct their performance and growth. These challenges included lack of experience, lack of equipment, lack of branding quality products, lack of training, lack of marketing skills, etc. These are the major challenges faced by entrepreneurs. Therefore the food processing sector contributes much less in terms of value addition and output despite its huge potential. 

Under the PMFME Scheme, these industries will be supported by government agencies and NGOs to increase their growth.  The government will provide credit flow to support financial aid. 

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PMFME 2022: Upgradation of Food Processing Enterprises

There will be two categories for the selection in the Scheme 

1. Individual Category 

Individual micro food processing units would be extended credit-linked capital subsidy to @35% of the eligible enterprises. This subsidy will be of the maximum ceiling of Rs.10 lakh per unit under PMFME Scheme.

Eligibility Criteria for Individual Category

• Individual/Partnership with ownership right of the enterprise;
• Existing Micro processing units must be verified in the survey.
• Applicants should be above 18 years of age and should have passed at least class 8th and must have the qualification certificate.
• Only one person from the family will be Benefited under the scheme.
• Individuals must contribute at least 10% of the total capital and the rest from bank loans.

2. Group Category

The PMFME Scheme will give support to the cluster to groups such as FPOs/ SHGs/ Producer Cooperatives and would be provided the following Support.

• Grant @35 with credit linkage for Capital investment with maximum limit as prescribed;
• Training support will be provided.
• Support for marketing and branding for Products under ODOP for developing the common brand.

 Eligibility criteria for Group Category 

• The enterprises should be engaged in the processing of ODOP produce for at least three years. 
• In the case of FPOs and Cooperatives, they should have a minimum turnover of Rs. 1 crore and the cost of the project proposed should not be larger than the present turnover.
• The group must have invested at least 10 percent of the total amount of the capital. 

PMFME Scheme Online Application 2022

PM Formalisation of Micro Food Processing Enterprises Scheme( PMFME Scheme) Online Application started for the year 2022. There are about 46000 applications submitted under the Scheme. For the PMFME application form you will have to follow the following steps:

• First, you will have to go to the Official Website of the PMFME Scheme.
• In the toggle menu, you will have to click on the PMFME Online registration.
• you have to select a user category either Individual or Group
• Then you will have to enter your details and submit the details.
• Your application will be forwarded to the officials.
• pmfme form can be downloaded by Clicking Here

PMFME Scheme Online Registration: Required documents

• Pan card 
• Mobile number
• Aadhar copy
• Passport-size photo of all members of a group or individual
• Address proof will be mandatory.
• Ration card
• Photocopy of bank statement of last 6 months.
• Bank passbook 
• Photocopy of qualifications.
• Loan sanctioned documents

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PMFME Scheme 2022: Coverage of States and Funding Pattern

• PM FME scheme is a centrally Sponsored Scheme with a budget of Rs. 10000 crores for coverage of 2,00,000 enterprises over a term of 5 years from 2020-2021 to 2024-25. 
• The expenditure under this scheme will be shared in a 60:40 ratio between the center and state in plain areas, and a 90:10 ratio in Northeastern and Himalayan states.
• There will be a 60:40. Ratio in UTs with legislatures and 100% of expenditure will be borne by the Central government in UTs without legislature.
• Funds under the Scheme would be provided to the States based on the approved Project Implementation Plan (PIP).

 PMFME 2022: One District One Product Approach

• This scheme will adopt the One district One product Approach to promote common products and marketing.
• The state will identify the food products in the district and products will be promoted under the PMFME.
• The scheme will also support the strengthening of backward and forward linkage to the ODOP products.
• The ODOP could be agricultural produce, mango, potato, litchi, tomato, skinny, bhujia, fisheries, poultry, meat, and millets based products.
• Those enterprises which are already processing products under the ODOP approach will be given training and technical, and financial support under the Scheme.

PMFME Scheme 2022: Support to Food Processing Units.

The following Support will be given to food processing units:

• Credit linked grant of 35% of the project with a maximum Subsidy of up to 10 lakh rupees.
• Credit linked grand at @35 % of project cost of FPOs/ Self help Groups and cooperatives for capital expenditure with a maximum limit.
• Seed capital of 40,000 per member to those who are engaged in food processing units.
• Support of branding and marketing up to 50% of the expenditure will be provided under the Scheme.
• Common infrastructure will be created under the scheme for self-help groups and cooperatives.

FAQs