PMFME Scheme

The Ministry of Food Processing Industries and NAFED (National Agricultural Cooperative Marketing Federation of India Limited) launched Three One District One Product (ODOP) brands under the Pradhan Mantri Formalisation of Micro food processing Enterprises (PMFME) Scheme.

About PMFME Scheme

• It is Launched under Atmanirbhar Abhiyan (in 2020)
• It aims to enhance the competitiveness of existing individual micro-enterprises in the unorganised segment of the food processing industry and to promote formalisation of the sector and provide support to Farmer Producer Organisations, Self Help Groups, and Producers Cooperatives along their entire value chain.
• The scheme adopts the One District One Product (ODOP) approach to reap the benefit of scale in terms of procurement of inputs, availing common services and marketing of products.
• It will be implemented over a period of five years from 2020-21 to 2024-25.

Financial Support:

• Existing individual micro food processing units desirous of upgrading their units can avail credit-linked capital subsidy at 35% of the eligible project cost with a maximum ceiling of Rs.10 lakh per unit.
• Support would be provided through credit linked grants at 35% for development of common infrastructure including common processing facility, lab, warehouse, etc. through FPOs/SHGs/cooperatives or state owned agencies or private enterprise.
• A seed capital (initial funding) of Rs. 40,000- per Self Help Group (SHG) member would be provided for working capital and purchase of small tools.

Funding:

• It is a centrally sponsored scheme with an outlay of Rs. 10,000 crore.
• The expenditure under the scheme would be shared in 60:40 ratio between Central and State Governments, in 90:10 ratio with North Eastern and Himalayan States, 60:40 ratio with UTs with legislature and 100% by Centre for other UTs.