Pradhan Mantri Formalisation of Micro Food Processing Enterprises (PM-FME) Scheme:
The Union Finance Minister of India announced the release of ₹3,791.1 crore to States and Union Territories under the Pradhan Mantri Formalisation of Micro Food Processing Enterprises (PM-FME) Scheme.
- PM-FME aims to strengthen micro food enterprises, promote ‘Vocal for Local’ products, and integrate rural entrepreneurs into the formal economy.
- Launched on 29 June 2020, the PM-FME Scheme is a Centrally Sponsored Scheme under the Atmanirbhar Bharat Abhiyan.
- It was launched for a duration of 2020–21 to 2025–26 with a total outlay of ₹10,000 crore.
- Salient Features of the Scheme:
- Common Infrastructure: FPOs, Cooperatives, SHGs, and Government agencies setting up food processing units with shared facilities are eligible for a 35% credit-linked subsidy, up to ₹3 crore.
- Credit-Linked Subsidy: Individuals, FPOs, NGOs, Cooperatives, SHGs, and Pvt. Ltd. firms can avail a 35% subsidy, up to ₹10 lakh per unit, for upgrading or setting up new units.
- One District One Product (ODOP): Implements an ODOP approach to promote scale, value chain development, and marketing support- covering 713 districts in 35 States/UTs with 137 unique products.
- Seed Capital for Self Help Groups: Provides ₹40,000 per member, up to ₹4 lakh per SHG, as seed capital for working capital and small tools, disbursed through SHG federations.
- Marketing & Branding: Offers a 50% grant for branding and marketing initiatives by FPOs, SHGs, Cooperatives, or SPVs to promote processed food products.
- Capacity Building: Provides training under the Food Processing Entrepreneurship Development Programme to enhance technical and business skills of beneficiaries.
- Cost Sharing Pattern: 60:40 between Centre and States, 90:10 for North Eastern and Himalayan States, 60:40 for UTs with legislature, and 100% Central funding for other UTs.
