As part of Aatmanirbhar Bharat Abhiyan, Ministry of Food Processing Industries have launched an all India centrally sponsored scheme, PM Formalisation of Micro food processing Enterprises (PMFME) Scheme to provide financial, technical and business assistance for upgradation of existing micro food processing enterprises. 

This scheme adopts 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. ODOP for the scheme will provide the framework for value chain development and alignment of support infrastructure. More than one cluster of ODOP product may be there in a district or cluster of ODOP product may consist of more than one adjacent district. Ministry has approved ODOP for 707 districts of 35 States/ UTs with 137 unique products. 

Support for common infrastructure for clusters would be provided to FPOs, SHGs, Cooperatives, any Government agency or private enterprises.

The objectives of the scheme are to build capacity of two lakh micro enterprises through increased access to credit, integration with organized supply chain by strengthening branding and marketing, increased access to common services, strengthening of institutions, research & training in the food processing sector.

Rameswar Teli, Minister of State, Food Processing Industries informed this in the Lok Sabha recently. The details of support to Micro Food Processing Units under the scheme are mentioned below:

     ii.         Support to Individual Micro Enterprises: Credit-linked capital subsidy @35 per cent of the eligible project cost, maximum ceiling Rs10 lakh per unit.

   iii.         Support to FPOs/ SHGs/ Producer Cooperatives: Credit linked Grant @35 per cent to support clusters and groups such as FPOs/ SHGs/ Producer Cooperatives along their entire value chain for sorting, grading, storage, common processing, packaging, marketing, testing etc. 

   iv.         Support to SHGs for seed capital: Seed capital @ Rs 40,000/- per member of SHG engaged in food processing for working capital and purchase of small tools.

     v.         Support for Common Infrastructure: Credit linked grant @ 35 per cent to support FPOs, SHGs, Cooperatives, any Government agency or private enterprises for Common infrastructure. The common infrastructure will also be available for other units and the public to utilise on a hiring basis for substantial part of the capacity.

   vi.         Branding and Marketing Support: Grant upto 50 per cent for Branding and Marketing to groups of FPOs/ SHGs/ Cooperatives or an SPV of micro food processing enterprises.

  vii.         Capacity Building: The scheme envisages training for Entrepreneurship Development Skilling (EDP+): program modified to meet the requirement of the food processing industry and product specific skilling.