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Post at: Jul 19 2021

Pradhan Mantri Formalisation of Micro Food Processing Enterprises (PMFME)

Recent Context

  • On 29th June 2021, PMFME Scheme has completed its 1 year of implementation.

About PMFME Scheme

  • It is a Centrally Sponsored Scheme which was launched on 29th June 2020.
  • It was launched under Atmanirbhar Bharat Abhiyan.
  • Government of India &States/UTs (with legislature) share expenditure in 60: 40 ratios; 90: 10 ratios (center: North Eastern & Himalayan states); and 100% by center for other UTs.
  • It was launched for unorganized sector in food processing industry (micro enterprises) with an outlay of Rs. 10,000 crore.


PMFME Scheme: Key Points

  • As this scheme is centrally sponsored scheme, its coverage includes all over India.
  • Implementation Period: 2020-21 to 2024-25.
  • 2 lakh micro enterprises are to be assisted with credit linked subsidy.
  • Ministry of Food Processing Industry is nodal ministry for implementation of PMFME.

Other Schemes Related to Food Processing –

  1. Mega Food Park Scheme: Under this scheme, the government creates modern infrastructure support for food processing along with value chain from farm to market with strong forward & backward linkages through cluster-based approach.
  2. Production Linked Incentive Scheme for Food Processing Industry (PLISFPI): This scheme aims to give companies incentives on incremental sales from products manufactured in domestic units.

Need and Way Forward

  • Nearly 25 lakh units in unorganized food processing sector give almost 74% of employment in the sector.
  • More than 50% units are in rural area and majority are family based enterprises.
  • These units are one of the major contributors of rural economy.
  • Formalizing these units will bring institutional frameworks ranging from finance to infrastructure to marketing to quality control.
  • This will give major boost to working of these units which in turn generate employment, resist migration from rural areas and increase the global footprint of Indian food processing industry.

Kameshwar Shukla



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