The PM Formalisation of Micro Food Processing Enterprises (PMFME) scheme offers a 35% credit-linked capital subsidy (maximum ₹10 lakh) to micro food-processing units for upgrading or setting up facilities, following the One District One Product (ODOP) approach.

Individual micro food-processing enterprises (existing or new), Farmer Producer Organisations (FPOs), Self Help Groups (SHGs), cooperatives, and producer groups. Priority is given to ODOP products of the district.

What is the maximum subsidy?

Individual units can receive up to ₹10 lakh (35% of eligible project cost) as a capital subsidy. SHGs can additionally get a branding and marketing grant of up to ₹50,000.

What does credit-linked mean?

The subsidy is credit-linked — you first need a term loan sanctioned by a bank or NBFC, and the 35% subsidy is then applied against your bank loan, reducing your outstanding principal.

No equity is taken. The benefit is a non-repayable government subsidy linked to your bank loan for capital investment.

Apply on the PMFME portal at pmfme.mofpi.gov.in. You will need Udyam Registration, an ODOP-aligned project proposal, and a bank sanction letter. District Resource Persons (DRPs) provide free handholding support.

PMFME — PM Formalisation of Micro Food Processing Enterprises

By Ministry of Food Processing Industries (MoFPI)

ActiveUp to ₹10LRolling ApplicationsNo equity taken

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Subsidy providers

Provider

Ministry of Food Processing Industries (MoFPI)

New Delhi · Delhi · India

The Ministry of Food Processing Industries (MoFPI), established in 1988, is the Government of India's nodal ministry for developing the food-processing sector — a major employment and value-addition engine linking agriculture to industry and consumers. Headquartered in New…

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Application Process

1
Obtain free Udyam Registration at udyamregistration.gov.in.
Obtain free Udyam Registration at udyamregistration.gov.in.
You
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How to apply

Four steps from draft to disbursement — one action each.

1
Submit on the official portal
Use the official application link and verify all details before final submission.
2
Follow up
Reach out 5–7 days after submitting to confirm receipt and ask about the review timeline.

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Sources

Data on this page is compiled from official program and provider references.

Ministry of Food Processing Industries (MoFPI)Provider

News

PMFME Scheme Set For Extension After Hitting 2-Lakh Unit Targetetvbharat.com · 4 weeks ago
Andhra links PMFME scheme with Streenidhi to help DWCRA women set up food unitstheprint.in · last month
Jammu Kashmir Gets PMFME Boost as 143 Micro Food Processing Units Secure Loans in Kupwara, Baramullakashmirlife.net · last month
Centre Releases Rs 34.71 Crore for Jammu Kashmir Under PMFME Schemekashmirlife.net · last month
PMFME scheme sanctions loans to over two lakh micro food processing enterprises, says Union Minister Chirag Paswan | Akashvani Newsnewsonair.gov.in · 2 months ago

Source: Google News aggregated