Scheme

PM Formalisation of Micro Food Processing Enterprises (PMFME)

GS3 Food processing and MSMEsPrelims and Mains

In the news since 29 January 2026 · last on 24 August 2026

Why in news
On 24 August 2026, Food Processing Industries Minister Chirag Paswan inaugurated the PMFME Conclave and PMFME Bazaar in New Delhi. Three MoUs were signed with APEDA, ONDC and NABKISAN, and the Minister called for a stronger PMFME 2.0.
What it is
The PM Formalisation of Micro Food Processing Enterprises (PMFME) Scheme is a centrally sponsored scheme of the Ministry of Food Processing Industries. It supports existing micro food processing units to upgrade and formalise through credit-linked subsidy, training and common services. It also backs SHGs, FPOs and cooperatives, and follows a One District One Product (ODOP) approach.
Conclave
MoFPI is holding the PMFME Conclave on 24-25 August 2026 at India Habitat Centre, New Delhi, with over 500 stakeholders.
PMFME Bazaar
The Bazaar has exhibitors from 25 States and UTs showing ethnic and traditional food products.
MoUs
Three MoUs were signed with APEDA, ONDC and NABKISAN to strengthen market and institutional linkages for beneficiaries.
Launches
A coffee table book of 30 beneficiary success stories and the Ministry's quarterly magazine 'FoodNova' were launched.
PMFME 2.0
The Minister stressed the need for a stronger and more comprehensive PMFME 2.0.
Scheme type
PMFME is a centrally sponsored scheme launched in 2020 as part of Atmanirbhar Bharat, with a 2020-21 to 2025-26 period.
Outlay and period
Outlay of Rs 10,000 crore, approved for 2020-21 to 2024-25 and now extended till September 2026.
Subsidy for individual units
35% credit-linked subsidy for individual micro enterprises, up to Rs 10 lakh.
Seed capital
Seed capital of Rs 40,000 per SHG member engaged in food processing, for working capital and small tools.
Branding and marketing grant
50% grant for branding and marketing to groups such as FPOs, SHGs and cooperatives.
ODOP coverage
137 unique products identified across 726 districts in 35 States and UTs.
Incubation centres
80 common incubation centres approved, 31 commissioned.
Individual unit subsidy
Micro enterprises get a credit-linked capital subsidy of 35% of eligible project cost, up to Rs 10 lakh per unit.
Seed capital for SHGs
SHG members engaged in food processing get Rs 40,000 each for working capital and small tools, up to Rs 4 lakh per SHG Federation.
Common infrastructure
FPOs, SHGs, cooperatives and government agencies get a 35% credit-linked subsidy, up to Rs 3 crore, for common infrastructure. Other units and the public can use it on hire.
Branding and marketing
Groups of FPOs, SHGs, cooperatives or an SPV of micro food processing enterprises get a grant of up to 50% for branding and marketing.
Handholding by DRPs
District Resource Persons help with project reports, bank loans, training, approvals and hygiene standards. They also help with Udyam, FSSAI and GST registration.
GeM tie-up
An MoU with the Government e-Marketplace was signed on 14 November 2024 to market products of supported units.

Don’t confuse with PMFME vs PMKSY: PMFME targets micro food units, mainly unorganised. PM Kisan SAMPADA Yojana (PMKSY) funds larger food processing infrastructure such as mega food parks and cold chains.

Don’t confuse with APEDA vs NABKISAN: APEDA promotes exports of agricultural and processed foods. NABKISAN is a NABARD subsidiary that finances farmer-linked enterprises and FPOs.

Don’t confuse with Individual vs group subsidy cap: Individual units get 35% subsidy up to Rs 10 lakh. FPOs, SHGs and similar groups get 35% up to Rs 3 crore for common infrastructure.

Schemes: 52 Prelims questions since 2013, 10 in Prelims 2026 alone. They test features, the period and who funds it. In Mains, 33 news-triggered questions, mostly GS3.

No practice question for this one; the card may still help an answer. Why: Lasting scheme, but this release is only an event with no new provisions. Schemes are 52 of 327 Prelims questions, though not for events.

Worth revising until Prelims 2028: most news questions come within two years of the event.

Each time it was in the news

  1. 24 August 2026

    On 24 August 2026, Food Processing Industries Minister Chirag Paswan inaugurated the PMFME Conclave and PMFME Bazaar in New Delhi. Three MoUs were signed with APEDA, ONDC and NABKISAN, and the Minister called for a stronger PMFME 2.0.

  2. 22 May 2026

    On 22 May 2026, a Joint Secretary of the Ministry of Food Processing Industries briefed the media in New Delhi on PMFME's progress. The scheme has been extended till September 2026.

  3. 29 January 2026

    On 29 January 2026, the Minister of State for Food Processing Industries told the Lok Sabha in a written reply how PMFME supports micro food processing units through credit-linked grants, seed capital, common facilities, branding and formalisation help.