How to Qualify for the PMFME Scheme?

Running a food processing unit and looking to grow your business? The PMFME scheme could be just what you need. Supported and implemented by the Ministry of Food Processing Industries, this initiative helps micro food enterprises access credit, build capacity, and receive marketing support.

India’s food industry is growing fast, and there’s a strong focus on bringing small, unorganised units into a formal framework. If you’re exploring a government scheme for business support in this space, the PMFME scheme offers real opportunities.

This blog will guide you through the important eligibility criteria, benefits, documents required and how to apply. If you’re part of a Self-Help Group, FPO, cooperative, or individual entrepreneur, this could be your next step towards scaling your operations with government support.

What Is the PMFME Scheme?

The PM Formalisation of Micro Food Processing Enterprises (PMFME) scheme was launched in 2020 by the Ministry of Food Processing Industries (MoFPI) to offer support to existing and new food processing units through credit, training, and marketing support. The total outlay is ₹10,000 crore, spread over five years (2020–25).

It supports both individual entrepreneurs and group organisations like:

• Self-Help Groups (SHGs)
• Farmer Producer Organisations (FPOs)
• Cooperatives
• Private Ltd. companies and partnerships

Salient Features of the PMFME Scheme

It is a central government initiative that supports micro-food enterprises with financial aid, skill training, and branding support.

1. Common Infrastructure

Groups like FPOs, SHGs, cooperatives, and government agencies can get a 35% capital subsidy (up to ₹3 crores) for setting up shared processing facilities or incubation centres.

2. Credit Linked Subsidy

Individuals, SHGs, cooperatives, and private firms can receive a 35% subsidy on project costs, up to ₹10 lakh per unit, for setting up or upgrading food processing units.

3. One District One Product (ODOP)

The scheme promotes local food economies by focusing on one key product per district. ODOP currently spans 713 districts and covers 137 unique food products.

4. Seed Capital for SHGs

SHG members can receive ₹40,000 each (up to ₹4 lakh per SHG) to meet working capital needs and buy small tools.

5. Marketing and Branding

A 50% grant is provided for packaging, promotion, and brand development for SHGs, FPOs, and cooperatives.

6. Capacity Building

Beneficiaries receive training in business planning, food safety, compliance, and marketing through the Food Processing Entrepreneurship Development Programme.

Who Can Apply for the PMFME Scheme?

The PMFME scheme is open to a wide range of micro-food processing stakeholders across India. To qualify, applicants must meet the following basic criteria:

1. Be a Micro Enterprise

Apply as an individual or through an SHG, FPO, cooperative, or producer company, with your unit classified as a micro-enterprise under MSME norms.

2. Have an Active or Planned Unit

Your food processing business should be operational or ready for launch with a clear and viable project plan.

3. Hold UDYAM Registration and Licences

UDYAM registration is mandatory. Depending on your activity, you may also need Food Safety and Standards Authority of India (FSSAI) registration, a trade licence, or other relevant approvals.

4. Apply Through a Recognised Bank

The scheme is credit-linked, so you must apply for a loan through an eligible bank. The subsidy is released only after loan approval.

How to Apply for the PMFME Scheme?

Applying for the PMFME scheme is simple and accessible. Follow these key steps to get started:

1. Check Eligibility

Ensure you fall under an eligible category, such as an individual entrepreneur, SHG, FPO, or cooperative involved in food processing, and meet the basic documentation and registration requirements.

2. Create a Business Plan

Prepare a clear project plan highlighting your financial needs, objectives, and expected outcomes. This strengthens your application and loan proposal.

3. Register on the Portal

Visit the official PMFME portal and submit your application online, along with supporting documents.

4. Verification and Approval

Your application will then be reviewed by local authorities and forwarded to a recognised bank for loan processing.

5. Subsidy Disbursement

Once your loan is sanctioned, the 35% capital subsidy is credited to your linked bank account to support infrastructure, equipment, or operational upgrades.

Applying for the scheme gives you access to credit, training, and branding support, helping your food processing unit grow sustainably.

Documents Required to Apply for the PMFME Scheme

The documentation for the PMFME scheme depends on the type of applicant and business size. Here’s a simplified list:

1. New Enterprises (Individuals/Firms)

PAN, Aadhaar, photo ID, address proof, and a 6-month bank statement. Optional: education certificate, existing loan documents.

2. Existing Enterprises (Turnover < ₹1 Crore)

PAN, Aadhaar, address proof, UDYAM or trade licence, and bank statement. Optional: financials with ITR, FSSAI, or other licences, GST returns, and loan/insurance documents.

3. Existing Enterprises (Turnover > ₹1 Crore)

PAN, Aadhaar, address proof, UDYAM/IE code, partnership deed (if any), bank statement, audited financials, GST documents, and machinery list. Optional: sales data, insurance, and promoter qualifications.

4. Farmer Producer Companies (FPCs)

PAN, Aadhaar, address proof, UDYAM/trade licence, registration certificate, MoA, AoA, director list, shareholding, board resolution, bank statement, 3-year financials, FSSAI, GST returns, DPR. Optional: loan records, buyer agreements, annual report.

5. Co-operative Societies

PAN, Aadhaar of chairman, address proof, UDYAM/trade licence, registration, bylaws, board list, borrowing resolution, bank statement, equipment quote, financials, GST, DPR, unit photos. Optional: AGM minutes, buyer contracts, annual report.

6. Self-Help Groups (SHGs)

Aadhaar of members, group list with photos, unit address proof, resolution, quotations, savings/loan records, and DPR. Optional: bank statement, meeting notes, buyer agreements, grant documents

Take the Next Step with the PMFME Scheme

The PMFME scheme is more than just a government scheme for business, it’s a blueprint for structured growth in India’s vibrant food processing sector. If you qualify, you gain access to funds, training, marketing support, and industry-grade infrastructure.

If you’re an individual entrepreneur, SHG, FPO, or cooperative, this is your chance to upgrade your unit and formalise operations. With a 35% capital subsidy and support from financial institutions like HDFC Bank, you can access customised loans to fund your business goals.