Discover About PM Formalisation of Micro Food Processing Enterprises Scheme

PM Formalisation of Micro Food Processing Enterprises Scheme (PMFME) has received over 1,02,515 loan applications so far. Out of the applications received, 25,774 loan applications have been sanctioned, according to the data shared by the minister of food processing industries Pashupati Kumar Paras

Features Of PM Formalisation of Micro Food Processing Enterprises Scheme (PMFME)

• Ministry of Food Processing Industries (MoFPI) is implementing a centrally sponsored “PM Formalisation of Micro food processing Enterprises (PMFME) Scheme
• The Scheme is a part of Atmanirbhar Bharat Abhiyan – Vocal for Local Initiative in food processing sector
• The Scheme has been launched to provide financial, technical and business support for setting up /upgradation of micro food processing enterprises in the country.
• The scheme is operational for a period of five years from 2020-21 to 2024-25 with an outlay of Rs. 10,000 Crore.
• The scheme aims to enhance the competitiveness of new and existing individual micro-enterprises in the unorganized segment of the food processing industry and promote formalization of the sector.

Assistance Under PM Formalisation of Micro Food Processing Enterprises Scheme

The details of assistance available to Micro Food Processing Enterprises under PMFME Scheme:

Focus Area Under PM Formalisation of Micro Food Processing Enterprises Scheme

• Capacity building and training is a critical component of the scheme in technical upgradation and formalization of micro food processing enterprises.
• The focus areas for capacity building are entrepreneurship development, compliance of Food Safety and Standards Authority of India (FSSAI) standards and general hygiene and other statutory compliances.

Need for PM Formalisation of Micro Food Processing Enterprises Scheme

• The Indian food processing industry has a vast variety of food products and the biggest production base. 
• But yet Challenges exists such as the absence of institutional finance, the key to modern equipment & technology and branding & marketing expertise. 
• To manage these challenges the Government of India has instituted several programs to promote investments in the food processing industry, via the Ministry of Food Processing Industries (MOFPI). 
• In acquisition, the government has allowed 100% FDI under the automated route in food processing industries
• According to KPMG, in 2019, the food processing industry was esteemed at US$ 290 billion and is anticipated to reach over US$ 500 billion by 2025.

Capacity Building and Research Component of PMFME Scheme

1. At the national level, the National Institute for Food Technology Entrepreneurship and Management (NIFTEM) and the Indian Institute of Food Processing Technology (IIFPT) will lead the capacity-building component of the scheme.
2. At the state level, NIFTEM and IIFPT will be supported by state technology institutions in the food processing technology sector.
3. Training and capacity building will cover areas such as: Entrepreneurship development Essential functions of enterprise operations, Bookkeeping, Registration, FSSAI standards, Udyog Aadhar, GST Registration, General hygiene, Packaging, and Marketing
4. At the district level, Rural Self Employment Training Institutes (RSETI) and other institutions will be used to impart training.

Partner Institutions of PMFME SCheme

The PM Formalization of Micro-Food Processing Enterprises Scheme will be assisted by the following institutions:

1. TRIFED
2. National Scheduled Caste Development Finance Corporation
3. National Cooperative Development Corporation (NCDC)
4. Small Farmers Agri-Business Consortium
5. National Rural Livelihood Mission

Other Schemes Related to Food Processing

Production Linked Incentive Scheme for Food Processing Industry (PLISFPI): Aims to give companies incentives on incremental sales from products manufactured in domestic units.

Mega Food Park Scheme: Mega Food Parks create modern infrastructure facilities for food processing along the value chain from farm to market with strong forward and backward linkages through a cluster-based approach.

Pradhan Mantri Kisan SAMPADA Yojana (PMKSY): Under component schemes of PMKSY, MoFPI mostly provides financial assistance in the form of grants-in-aid to entrepreneurs for creation of modern infrastructure and setting up of food processing / preservation industries including Cold Chains with associated infrastructure like primary processing facilities, collection centres, pre-conditioning, pre-cooling, ripening, packing etc.

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