PM FME Scheme 2024 Apply Online
All existing food processing units who are desirous of getting financial assistance can apply online for PM FME scheme. District Resource Persons (RPs) which are engaged for field level support will provide handholding support to prepare DPR, avail bank loan, obtain necessary registration and licences which would include food standards of FSSAI, Udyog Aadhar and GST. Applications for Support for FPOs / SHGs / cooperatives, common infrastructure and marketing & branding must be submitted to the State Nodal Agency (SNA) along with a DPR. The SNR would appraise the project for grant and recommend for bank loan.
Grant given by central govt. would be deposited in the account of the beneficiary in the lending bank. If after period of 3 years from disbursement of last tranche of loan, beneficiary account is still standard and the unit is operational, this amount would be adjusted in the bank account of the beneficiary. No interest would be charged by lending bank for the grant amount in loan.
pmfme.mofpi.gov.in Portal Registration / Login
- First of all, go to official PMFME Scheme website at pmfme.mofpi.gov.in
- Click "Online Registration" link or https://pmfme.mofpi.gov.in/pmfme/#/Login
- Enter User ID, password and click "Submit" button to make "login".
- Click at "Sign Up" button to open PM FME online registration form.
- Select type of beneficiary, name, email ID, mobile number, address, state, district and click "Register" button to complete pmfme.mofpi.gov.in portal registration and login process.
PMFME Scheme Objectives
The new PMFME scheme aims to enhance the competitiveness of existing individual micro-enterprises in unorganized segment of food processing industry and promote formalization of the sector. Also PM FME scheme will support Farmer Producer Organizations (FPOs), Self Help Groups (SHGs) and Producers Cooperatives along their entire value chain. The objectives of scheme are to build capability of microenterprises to enable:-- Increased access to credit by existing micro food processing entrepreneurs, FPOs, Self Help Groups and Co-operatives;
- Integration with organized supply chain by strengthening branding & marketing;
- Support for transition of existing 2,00,000 enterprises into formal framework;
- Increased access to common services like common processing facility, laboratories, storage, packaging, marketing and incubation services;
- Strengthening of institutions, research and training in the food processing sector; and
- Increased access for the enterprises, to professional and technical support.
PM Formalisation of Micro Food Enterprises (PMFME) Scheme
Under PM FME Scheme, central government will provide financial, technical and business support to upgrade existing micro food processing enterprises. Ministry of Food Processing Industries (MoFPI) has launched pan India "Centrally Sponsored PM Formalisation of Micro food processing Enterprises (PM FME) scheme". This PMFME scheme will be implemented over a period of 5 years from 2020-21 to 2024-25 with an outlay of Rs. 10,000 crore.The expenditure under PMFME Scheme would be shared in 60:40 ratio between central and state governments, 90:10 ratio with North Eastern and Himalayan States, 60:40 ratio with UTs with legislature and 100% by Centre for other UTs.
Under the PM FME scheme, nearly 2,00,000 micro food processing units will be directly assisted with credit linked subsidy. Adequate supportive common infrastructure and institutional architecture will be supported to accelerate growth of the sector.
One District One Product (ODOP) Approach
The new PM FME Scheme adopts One District One Product (ODOP) approach to avail benefits of scale in terms of procurement of inputs, availing common services and marketing of products. The state govt’s will identify food product for a district keeping in view the existing clusters and availability of raw material. The ODOP product could be a perishable produce based product or cereal based products or a food product widely produced in a district and their allied sectors. Illustrative list of such products includes mango, potato, litchi, tomato, tapioca, kinnu, bhujia, petha, papad, pickle, millet based products, fisheries, poultry, meat as well as animal feed among others.The central govt. will provide preference to those districts producing products under ODOP Scheme. However, units producing other products would also be supported. Support for common infrastructure and branding & marketing would be for ODOP products. The Scheme also place focus on waste to wealth products, minor forest products and Aspirational Districts.
Credit Linked Capital Subsidy for Upgradation of Individual MFP Units
All the existing Individual micro food processing units who wants to upgrade their unit can avail credit-linked capital subsidy. This subsidy comes at 35% of the eligible project cost with a maximum ceiling of Rs. 10 lakh per unit.Support to FPOs / SHGs / Cooperatives
FPOs / SHGs / Producer cooperatives would be provided credit linked grant of 35% for capital investment along the value chain.Seed Capital to SHG
The Seed capital at Rs. 40,000 per SHG member would be provided for working capital and purchase of small tools.Common Infrastructure Development
The central govt. will also provide support through credit linked grant @ 35% for development of common infrastructure. It includes common processing facility, lab, warehouse, cold storage, packaging and incubation center through FPOs/SHGs/cooperatives or state owned agencies or private enterprise to use by micro units in the cluster.Support for Marketing and Branding
Central govt. will give support for marketing & branding to develop brands for micro units and groups with 50% grant at state/regional level which could benefit large number of micro units in clusters.Special Focus on Capacity Building and Research
PM Formalisation of Micro Food Enterprises Scheme (PM FME Scheme) lays special focus on capacity building and research. NIFTEM and IIFPT academic and research institutions under MOFPI along with State Level Technical Institutions selected by the States would get support under PMFME. The support will be given fo the following purposes:-- Training of units,
- Product development,
- Appropriate packaging
- Adequate Machinery for micro units.
All the processes of the PM FME Scheme would take place on an MIS including applications by entrepreneurs, their processing, approval of various projects by the States and MoFPI, release of grant and other funds and monitoring of the project.
Individual entrepreneurs and other stake holders desirous of availing assistance under MOFPI PMFME scheme may contact the State Nodal Agencies of their respective states/ UTs regarding the roll out of scheme and contact points at the district level.
PM FME Scheme Eligibility Criteria for Individual Micro Enterprises
- Existing micro food processing units in operations;
- Existing units should be those identified in the SLUP for ODOP products or by the Resource Person on physical verification. In case of units using electrical power, electricity bill would support it being in operations. For others units, existing operations, inventory, machines and sales would form the basis;
- The enterprise should be unincorporated and should employ less than 10 workers;
- The enterprise should preferably be involved in the product identified in the ODOP of the district. Other micro enterprises could also be considered;
- The applicant should have ownership right of the enterprise;
- Ownership status of enterprise could be proprietary / partnership firm;
- The applicant should be above 18 years of age and should possess at least VIII standard pass educational qualification;
- Only one person from one family would be eligible for obtaining financial assistance. The “family” for this purpose would include self, spouseand children;
- Willingness to formalize and contribute10% of project cost and obtain Bank loan;
- Cost of the land should not be included in the Project cost. Cost of the ready built as well as long lease or rental workshed could be included in the project cost. Lease rental of workshed to be included in the project cost should be for a maximum period of 3 years only.
Why PMFME Scheme is Essential
A large number of challenges are faced by the unorganised food processing sector which has an impact on their performance and growth. Some of the challenges are listed below:-- Lack of access to modern technology & equipment.
- Lack of Training.
- Difficulty in access to institutional credit.
- Lack of basic awareness on quality control of products.
- Lack of branding & marketing skills.
Also, unorganized food processing sector comprises of nearly 25 lakh units which contributes to 74% employment in food processing sector. Nearly 66% of these units are located in rural areas and about 80% of them are family-based enterprises supporting livelihood rural household and minimizing their migration to urban areas. These units largely fall within the category of micro enterprises. So to promote such micro enterprises, PM FME scheme has been started which would even be beneficial for employment.
Highlights of PM FME Scheme
Some of the most striking features of PM FME Scheme are as follows:-
- Micro Enterprises to get Credit Linked Subsidy at 35% of the total eligible project cost with ceiling of Rs. 10 lakh for upgradation of infrastructure and capacity addition.
- SHGs to get Seed Capital for giving loans to members for working capital and small tools.
- On Site Skill training and Hand Holding.
- Special focus on women entrepreneurs and aspirational districts.
- Transition from unorganized sector to formal sector.
Customer Care Details for PMFME Scheme
- Helpline Number - 9254997101, 9254997102, 9254997103, 9254997104 & 9254997105 (09:00 AM - 7:00 PM)
- Email ID - support-pmfme[at]mofpi[dot]gov.in
- MOFPI Website - pmfme.mofpi.gov.in
Check more details about PM FME scheme at https://pmfme.mofpi.gov.in/pmfme/#/Home-Page
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