‘Pradhan Mantri Formalisation of Micro Food Processing Enterprises(PMFMFE)


  • It was launched by the Prime Minister Narendra Modi on 29 June 2020 under Aatmanirbhar Bharat Abhiyan.
  • It is a Centrally sponsored scheme launched by the Government of India in collaboration with the State Governments and Union Territories .

Aim of the Scheme 

The scheme has been launched by the Central government   to enhance the competitiveness of existing individual micro-enterprises in the unorganized segment of the food processing industry and promote formalization of the sector and support Farmer Producer Organizations (FPOs), Self Help Groups (SHGs) and Producers Cooperatives along their entire value chain.

Status of Unorganised  food processing sector  in India 

  • The unorganized food processing sector in the country comprises nearly 25 lakh food processing enterprises that are unregistered and informal.
  • With only 7% of investment in plant & machinery and 3% of outstanding credit, the unorganized enterprises contribute to 74% of employment (a third of which are women), 12% of output, and 27% of the value addition in the food processing sector. 
  • Nearly 66% of these units are located in rural areas and about 80% of them are family-based enterprises. Most of these units fall under the category of micro-manufacturing units in terms of their investment in plant & machinery and turnover.

 What is a Micro Enterprises 

The  Micro, Small and Medium Enterprises Development Act, 2006 defines  Micro enterprises are those enterprises where the investment where the investment in plant and machinery or equipment does not exceed one crore rupees and turnover does not exceed five crore rupees.

Which Ministry administers the PMFMFE scheme 

 Union Ministry of Food Processing Industries administers the PMFMFE scheme

How many Food Processing Units are to be supported  in the scheme 

Under the scheme, 2,00,000 micro food processing units will  have been selected under this scheme and they will be directly assisted with credit-linked subsidies.

Objectives of the scheme 

  • Increased access to credit by existing micro food processing entrepreneurs, FPOs, Self Help Groups, and Co-operatives;
  • Integration with an organized supply chain by strengthening branding & marketing;
  • Support for the transition of existing 2,00,000 enterprises into the 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;
  • Increased access for the enterprises, to professional and technical support;

Outlay for the scheme 

The Government of India will spend Rs 10,000 crore for this scheme in the next five years (2020-21 to 2024-25).


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