5-Aug-2022: Implementation of PMFME

Ministry of Food Processing Industries (MoFPI) is implementing a centrally sponsored "PM Formalisation of Micro food processing Enterprises (PMFME) Scheme" for providing financial, technical and business support for setting up / upgradation of micro food processing enterprises in the country. The scheme is operational for a period of five years from 2020-21 to 2024-25 with an outlay of Rs. 10,000 Crore.

MoFPI does not set up Food Processing Industries on its own. However, it assists entrepreneurs in establishing such Industries across the country including Tamil Nadu through its Central Sector Umbrella Scheme Pradhan Mantri Kisan SAMPADA Yojana (PMKSY), Production Linked Incentive Scheme for Food Processing Industry (PLISFPI) and Centrally sponsored PMFME Scheme.

The details of assistance available under PMFME Scheme

1. Support to Individual / Group Category Micro Enterprises: Credit-linked capital subsidy @35% of the eligible project cost, maximum ceiling Rs.10 lakh per unit;
2. Support to SHGs for seed capital: Seed capital @ Rs. 40,000/- per member of SHG engaged in food processing for working capital and purchase of small tools subject to maximum of Rs. 4 lakh per SHG Federation.
3. Support for Common Infrastructure: Credit linked capital subsidy @35% subject to maximum of Rs. 3 crore to support FPOs, SHGs, Cooperatives and any Government agency for setting up of common infrastructure. The common infrastructure will also be available for other units and public to utilize on hiring basis for substantial part of the capacity.
4. Branding and Marketing Support: Grant upto 50% for Branding and Marketing to groups of FPOs/ SHGs/ Cooperatives or an SPV of micro food processing enterprises.
5. Capacity Building: The scheme envisages training for Entrepreneurship Development Skilling (EDP+): program modified to meet the requirement of food processing industry and product specific skilling.

1-Jul-2022: PMFME Scheme of M/o Food Processing Industries, under Aatmanirbhar Bharat Abhiyan, Completes Two Years

The centrally sponsored Pradhan Mantri Formalisation of Micro food processing Enterprises (PMFME) Scheme was launched on 29th June, 2020 by the Ministry of Food Processing Industries, Government of India under the Aatmanirbhar Bharat Abhiyan. The scheme has completed two years and a journey that started with the zest to empower the unorganized Micro Enterprises continues to fulfill the aim of formalising the food processing sector and celebrating their tremendous support towards the economy, has borne good results for the sector.

Envisioning enhancement of the existing individual micro-enterprises in the unorganized segment of the food processing industry and formalization of the sector, the PMFME Scheme is currently being implemented in 35 States and Union Territories. Under the scheme, the submission process for the applicants to apply for the credit-linked subsidy is done through the online portal (www.pmfme.mofpi.gov.in). Nearly 50,000 applicants have registered on the portal and more than 25,000 applications have been successfully submitted so far.

The digital GIS One District One Product (ODOP) map of India has been developed to provide details of ODOPs of all the States and UTs. The digital map also has indicators for Tribal, SC, ST, aspirational districts and Incubation Centers approved under the PMFME Scheme. It will enable stakeholders to make concerted efforts for its value chain development.

The Ministry of Food Processing Industries signed Joint Letters with Ministry of Rural Development (MoRD), Ministry of Tribal Affairs (MoTA) and Ministry of Housing and Urban Affairs (MoHUA) and MoUs with Indian Council of Agriculture Research (ICAR), National Cooperative Development Corporation (NCDC), Tribal Co-operative Marketing Development Federation of India (TRIFED), National Agricultural Cooperative Marketing Federation of India  (NAFED), National Scheduled Castes Finance and Development Corporation (NSFDC), National Scheduled Tribes Finance and Development Corporation (NSTFDC), Food Safety and Standards Authority of India (FSSAI) and Department of Animal Husbandry and Dairying (DAHD). An agreement has been signed with the Union Bank of India as the Nodal Bank for the PMFME Scheme and MoUs have been signed with 15 banks as official lending partners for the scheme.

Under the Capacity Building component of the scheme, the National Institute of Food Technology Entrepreneurship and Management, Kundli (NIFTEM-K) and the National Institute of Food Technology Entrepreneurship and Management, Thanjavur (NIFTEM-T) have been performing a key role in providing training and research support to food processing enterprises/groups/clusters in partnership with the State Level Technical Institutions and private training partners. Training of beneficiaries is being conducted on food product processing including Food Safety & Hygiene and Entrepreneurship Development Programme (EDP).

75 Incubation Centers have been approved under the scheme. The Ministry in collaboration with the National Institute of Food Technology Entrepreneurship and Management, Thanjavur (NIFTEM-T) has also developed an online portal for submission of Incubation Center proposals and a digital map for the facilitation of details of Incubation Centers across the country.

The PMFME Scheme also envisages financial support of Rs. 40,000 for working capital and purchase of small tools for each member of the Self Help Group (SHG) engaged in food processing activities. Over 1 lakh SHG members have been identified and the seed capital amount of Rs. 203 Cr. has been released so far.

Under the scheme, MoUs have been signed with NAFED and TRIFED to take up the marketing and branding activities for supporting and handholding the beneficiaries along the entire value chain. Under the component 10 ODOP Brands in association with NAFED have been launched. The scheme also envisages marketing support to State-level brands. As of now, 2 State-level brands have been successfully launched, including the brand “AASNAA” from the State of Punjab and the brand “BHIMTHADI” from the State of Maharashtra and many others in the pipeline.

To commemorate 75 years of India’s Independence, under the Azadi Ka Amrit Mahotsav initiative, the Ministry is conducting 75 Unique One District One Product (ODOP) webinars/offline workshops across the country in collaboration with States/UTs and NIFTEM. “Kahaani Sukshma Udyamon Ki” a series of success stories is also being published under this initiative wherein the inspiring stories feature the journey of the Micro Enterprises and Self Help Groups in the food processing sector, create awareness about the opportunities in the sector and encourage the existing and aspiring entrepreneurs to take the opportunity of availing the PMFME Scheme benefits to upscale their food processing business.

A monthly e-newsletter is also published featuring success stories, stories of innovation, One District One Product based stories, and research-based articles related to food processing. The E-Newsletter also features interviews with academics and industry professionals from the food processing sector, innovations and trends in the sector that can help Micro Enterprises, Self Help Groups, FPOs and Co-operatives to grow and become Aatmanirbhar.

26-Apr-2022: One District One Product (ODOP) Workshop held under the Kisan Bhagidari Prathmikta Hamari Campaign

To commemorate Azadi ka Amrit Mahotsav, an initiative by the Government of India to celebrate 75 glorious years of progressive India, its rich history, culture and great achievements, -"Kisan Bhagidari Prathmikta Hamari" Campaign is scheduled from 25.04.22 to 30.04.22.

As a part of the campaign, the Ministry of Food Processing Industries, under the Pradhan Mantri Formalisation of Micro food processing Enterprises (PMFME) Scheme, organized the ODOP-based workshop on the Processing and Value addition of Walnuts in Kishtwar district, Jammu and Kashmir.

The event was inaugurated by Shri Ashok Kumar Sharma, Deputy Commissioner, Kishtwar. The ODOP workshop aimed to set the stage for all food-tech stakeholders to impart, discuss and acquaint the stakeholders on the new emerging trends in food processing and technological innovation in Walnut Processing in the Kishtwar district.

Sh. Vishesh Paul Mahajan, Director, Horticulture (Planning and Marketing) Jammu and Kashmir gave the inaugural speech. He highlighted the importance of the micro food processing sector as the growth driver of the Indian economy and through the PMFME Scheme the government’s efforts to encourage food processing in India. The Event was moderated by Sh. Sunil Singh, District Nodal Officer, Kishtwar.

The workshop witnessed the presence of eminent industry speakers sharing their insights for micro-enterprises and Farmers to pave the way in walnut-based products to scale to domestic and global levels.

Among the distinguished speakers were, Shri Ashok Kumar Sharma, Dy. Commissioner, Kishtwar. Dr Brij Paul SMS (PP) Dept. of Horticulture, Kishtwar who spoke about the Relevance of the ODOP for the district. Speaking on the occasion Deputy Commissioner Kishtwar appealed the orchardists/farmers to come forward and lay a proactive role in the implementation of rolled out schemes of the departments so that the income of these farmers is increased. Deputy Commissioner Kishtwar also informed that district administration is working on the establishment of Model "Mandi" in the district. He further informed that 50 Kanals of land alongside the national highway in the district has been identified to establish the mandi which will provide a common platform for the display, sale and marketing of the product and also provide national-level access to farmers.

Mr. Khalid Malik General Manager, DIC, Kishtwar conducted a session on “Potential Opportunities and Technologies for Micro Entrepreneurs”

Dr. Syed Zameer Hussain, Head, Division of Food Sc. & Technology, SKUAST-K, conducted a session on “Scope and future strategies for Processing and value addition of Walnuts in J&K, particularly in District Kishtwar”.

The ODOP Workshop under Kisan Bhagidari Prathmikta Hamari Campaign is one of a kind initiative by the M/o Food Processing Industries along with the support of distinguished industry experts to educate and guide the farmers in the Kishtwar District of Jammu and Kashmir to make informed decisions in order to scale up their food business in Walnut processing in the present scenario.

In addition to the participation of the various eminent guest speakers, the event saw the participation of around 300 farmers, orchardists and government officials from across the UT and also the food processing micro-enterprises. It was also hosted live successfully and witnessed the vast participation of all stakeholders.

About the PMFME Scheme: Launched under the Aatmanirbhar Bharat Abhiyan, the Pradhan Mantri Formalisation of Micro food processing Enterprises (PMFME) Scheme is a centrally sponsored scheme that aims to enhance the competitiveness of existing individual micro-enterprises in the unorganized segment of the food processing industry and to promote formalization of the sector and provide support to Farmer Producer Organizations, Self Help Groups, and Producers Cooperatives along their entire value chain. With an outlay of Rs. 10,000 crore over a period of five years from 2020-21 to 2024-25, the scheme envisions to directly assist the 2,00,000 micro food processing units for providing financial, technical, and business support for upgradation of existing micro food processing enterprises.

4-Feb-2022: Aatma Nirbhar Bharat Package for Micro Enterprises

As part of the Aatmanirbhar Bharat Initiative, Ministry of Food Processing Industries is implementing a Centrally Sponsored PM Formalisation of Micro food processing Enterprises (PMFME) Scheme for providing financial, technical and business support for setting up/ up gradation of 2 lakh micro food processing enterprises through credit linked grant  during five years from 2020-21 to 2024-25 with an outlay of Rs. 10,000 crores.

The scheme envisages supporting micro enterprises through increased access to credit, integration with organized supply chain by strengthening branding and marketing, increased access to common services, strengthening of institutions, research & training in the food processing sector.

The details of support to Micro Food Processing Units under the scheme are mentioned below:

1. Support to Individual Micro Enterprises: Credit-linked capital grant @35% of the eligible project cost, maximum ceiling Rs.10 lakh per unit;
2. Support to FPOs/ SHGs/ Producer Cooperatives: Credit linked Grant @35% to support clusters and groups such as FPOs/ SHGs/ Producer Cooperatives along their entire value chain for sorting, grading, storage, common processing, packaging, marketing, testing etc.
3. Support to SHGs for seed capital: Seed capital @ Rs. 40,000/- per member of SHG engaged in food processing for working capital and purchase of small tools.
4. Support for Common Infrastructure: Credit linked grant @ 35% to support FPOs, SHGs, Cooperatives, any Government agency or private enterprises for Common infrastructure. The common infrastructure will also be available for other units and public to utilize on hiring basis for substantial part of the capacity.
5. Branding and Marketing Support: Grant upto 50% for Branding and Marketing to groups of FPOs/ SHGs/ Cooperatives or an SPV of micro food processing enterprises.
6. Capacity Building: Training for Entrepreneurship Development Program to meet the requirement of food processing industry and product specific skilling.

Under Marketing and Branding component of the scheme, the following support to micro enterprises has been envisaged:

(i) Developing a common brand and packaging including product standardization (ii) Marketing tie up with national and regional retail chains and state level institutions (iii) Quality control to ensure product quality meets required standards (iv) Training relating to marketing

The major eligible components for support under the scheme are Market study, Product standardization (including quality assurance), Packaging material, Graphic designing, warehousing/ storage rentals, Promotional activities, Training related to Sales & Marketing and Trademark registration.

5-Jan-2022: Six One District One Product brands launched under the PMFME scheme of the Ministry of Food Processing Industries

Union Minister for Ministry of Food Processing Industries, Shri Pashupati Kumar Paras and Minister of State, Shri Prahlad Singh Patel and senior officials of NAFED today launched six, One District One Product (ODOP) brands under the Pradhan Mantri Formalisation of Micro food processing Enterprises (PMFME) Scheme at Panchsheel Bhawan, New Delhi.

The Ministry of Food Processing Industries has signed an agreement with NAFED for developing 10 brands of selected ODOPs under the branding and marketing component of the PMFME scheme. Out of these, six brands namely Amrit Phal, Cori Gold, Kashmiri Mantra, Madhu Mantra, Somdana, and Whole Wheat Cookies of Dilli Bakes were launched today.

The brand Amrit Phal for amla juice has been exclusively developed under the ODOP concept for Gurugram, Haryana. The product contains pure amla juice and is a natural elixir with added lemon for a unique taste and health benefits. The 500 ml bottle is competitively priced at Rs.120/-.

Cori Gold brand has been developed for coriander powder which is the identified ODOP for Kota, Rajasthan. The product has a distinct flavour and brings forth a regional speciality. The 100g pack is competitively priced at Rs.34/-.

Brand Kashmiri Mantra brings out the essence of spices from Kulgam, Jammu and Kashmir. The Kashmiri Lal Mirch product has been developed under the ODOP component for spices for Jammu and Kashmir. The product has a distinct flavour and the 100g pack is priced at Rs.75/-.

Brand Madhu Mantra has been developed under the ODOP concept for honey from Saharanpur, Uttar Pradesh. The multiflora honey has been collected by free-range bees and the 500g glass bottle is competitively priced at Rs.185/-.

Whole wheat cookies, is the second product developed under the brand Dilli Bakes. The brand and the product have been developed under the bakery ODOP concept for Delhi. According to NAFED, the whole wheat cookie is a unique product as it is made with whole wheat, jaggery instead of sugar, and contains butter instead of vanaspati. The 380 gm pack is competitively priced at Rs.175/-.

Brand Somdana has been developed under the ODOP concept of millets from Thane, Maharashtra. The ragi flour is a unique product as it is gluten-free, rich in iron, fibre, and calcium. The 500 gm pack is priced at Rs.60/-.

According to NAFED, for the benefit of consumers, all the products come in unique and attractive packaging that keeps moisture and sunlight at bay, thus ensuring a longer shelf life of the product and keeping it fresh.

Each Product has been developed based on the extensive knowledge and legacy of the marketing expertise of NAFED as well as its capabilities and experience in processing, packaging, supply and logistics. Moreover, each brand will be supported with increased investments in brand communication in relevant markets and a strong push on digitization across the value chain.

Through this initiative under the PMFME scheme, the Ministry of Food Processing Industries aims to encourage the micro food processing enterprises (MFPEs) across the country about the vision, efforts, and initiatives of the Government to formalise, upgrade and strengthen them and take them a step closer to Aatmanirbhar Bharat. MFPs are encouraged to come forth and avail branding support under this initiative including use of marketing rights of these brands from NAFED.

All the products will be available at NAFED Bazaars, E-commerce platforms, and prominent retail stores across India.

About the PMFME Scheme: Launched under the Aatmanirbhar Bharat Abhiyan, the Pradhan Mantri Formalisation of Micro food processing Enterprises (PMFME) Scheme is a centrally sponsored scheme that aims to enhance the competitiveness of existing individual micro-enterprises in the unorganized segment of the food processing industry and to promote formalization of the sector and provide support to Farmer Producer Organizations, Self Help Groups, and Producers Cooperatives along their entire value chain. With an outlay of Rs. 10,000 crore over a period of five years from 2020-21 to 2024-25, the scheme envisions to directly assist the 2,00,000 micro food processing units for providing financial, technical, and business support for up-gradation of existing micro food processing enterprises.

29-Oct-2021: Ministry of Food Processing Industries, in association with NAFED, launches ‘Dilli Bakes’ – First ‘One District, One Product’ (ODOP) brand under PMFME Scheme

The Ministry of Food Processing Industries, in association with the National Agricultural Cooperative Marketing Federation of India (NAFED), launched the first ‘One District, One Product’ ‘Dilli Bakes’ in the bakery products category of the Pradhan Mantri Formalisation of Micro food processing Enterprises (PMFME) Scheme on Friday at Panchsheel Bhawan, New Delhi.

The brand was launched in the august presence of Union Minister for Food Processing Industries, Sh. Pashupati Kumar Paras, Minister of State for Food Processing Industries, Sh. Prahlad Singh Patel and Sh. Sanjeev Kumar Chadha, MD, NAFED.

The brand and the product have been exclusively developed under the ODOP concept for the bakery which is one of the ODOPs for Delhi. This is the first product, i.e., whole wheat rusks launched under the Dilli Bakes brand and will be followed by launch of more products. According to NAFED, the whole wheat rusks is a unique product as it is made with jaggery instead of sugar and contains butter instead of vanaspati. The 260gm pack is competitively priced at M.R.P. Rs. 60 for the benefit of consumers and is available in unique and attractive packaging that keeps moisture and sunlight at bay, thus ensuring longer shelf life of the product and keeping it crispier and fresh.

Under the PMFME Scheme, the Ministry of Food Processing industries had signed an MoU with NAFED for developing ten brands of the selected ODOPs under the branding & marketing component of the scheme.

Through this initiative, the Ministry of Food Processing Industries, in association with NAFED under the PMFME scheme, aims at sending a strong and encouraging message to the micro food processing enterprises (MFPEs) across the country about the vision, efforts and initiatives of the Government to formalise, upgrade and strengthen them taking them a step closer to Aatmanirbhar Bharat.

Dilli Bakes Products will be available at all NAFED Bazaars, E-commerce platforms, and prominent retail stores across India.

About the PMFME Scheme: Launched under the Aatmanirbhar Bharat Abhiyan, the Pradhan Mantri Formalisation of Micro food processing Enterprises (PMFME) Scheme is a centrally sponsored scheme that aims to enhance the competitiveness of existing individual micro-enterprises in the unorganized segment of the food processing industry and to promote formalization of the sector and provide support to Farmer Producer Organizations, Self Help Groups, and Producers Cooperatives along their entire value chain. With an outlay of Rs. 10,000 crore over a period of five years from 2020-21 to 2024-25, the scheme envisions to directly assist the 2,00,000 micro food processing units for providing financial, technical, and business support for upgradation of existing micro food processing enterprises.

27-Sep-2021: Ministry of Food Processing Industries, in association with the Ministry of Housing and Urban Affairs, virtually launched the PMFME Scheme Seed Capital Module

The Ministry of Food Processing Industries, Government of India, in association with the Ministry of Housing and Urban Affairs, under the Pradhan Mantri Formalisation of Micro food processing Enterprises (PMFME) Scheme, virtually launched the Seed Capital Module on Deendayal Antyodaya Yojana-National Urban Livelihoods Mission (DAY-NULM) MIS Portal for seed capital assistance to members of urban Self Help Groups working in the food processing sector in India.

The seed capital portal can be accessed at https://nulm.gov.in/Auth/Login.aspx for Self Help Groups to avail the seed capital assistance of Rs.40,000 per SHG member under the PMFME Scheme. Urban SHG members which are engaged in Food Processing activities would be sensitized and motivated about the PMFME scheme to avail the benefits of seed capital for purchasing small tools and working capital.

Launched under the Aatmanirbhar Bharat Abhiyan, the PMFME Scheme aims to enhance the competitiveness and promote formalization of the unorganized micro—food processing enterprises in India. The scheme aims to empower the self-help groups by:

1. Seed capital support of Rs.40,000 per SHG member;
2. Credit linked subsidy for capital investment up to 35% with a ceiling of Rs. 10 lakh;
3. Credit linked grant support up to 35% for establishing common infrastructure;
4. Handholding support for DPR preparation and;
5. Capacity building and training support.

About the PMFME Scheme: Launched under the Aatmanirbhar Bharat Abhiyan, the Pradhan Mantri Formalisation of Micro food processing Enterprises (PMFME) Scheme is a centrally sponsored scheme that aims 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 provide support to Farmer Producer Organizations, Self Help Groups, and Producers Cooperatives along their entire value chain. With an outlay of Rs.10,000 crore over a period of five years from 2020-21 to 2024-25, the scheme envisions to directly assist the 2,00,000 micro food processing units for providing financial, technical, and business support for upgradation of existing micro food processing enterprises.

30-Jul-2021: PMFME

The Central Government, in partnership with the State Governments, has launched "PM Formalisation of Micro food processing Enterprises (PMFME) Scheme" for providing financial, technical and business support for upgradation of micro food processing enterprises in the country. The scheme is operational for a period of five years from 2020-21 to 2024-25 with an outlay of Rs 10,000 Crore. Support to upgrade existing units or setting up of new micro units for individuals is provided through a credit linked grant @ 35% with maximum grant of Rs.10 lakhs. The Scheme also provides support to food processing units of SHGs/ FPOs/ Cooperatives for credit linked subsidy@35%, Seed Capital to SHGs, Incubation Centre, Common Infrastructure, Marketing & Branding and Capacity Building.  Two lakh micro food processing units will be directly assisted with credit linked subsidy, capacity building and marketing & branding support.

In 2020-21, against the Budget of Rs. 398.69 crore, expenditure incurred was Rs.398.43 crore including Letter of Authorizations. For 2021-22, BE is Rs. 500 crore  and expenditure of Rs.104.80 crore has been incurred so far.

For implementing the new centrally sponsored scheme, various preparatory steps have been taken by Central Government and States/ UTs, that included setting up of institutional mechanism, hiring of technical specialists to support the micro enterprises, preparing of training architecture, training of trainers at various levels, involving banks in the scheme for sanction of credit for upgradation of micro unit, identification of micro units for providing support under the scheme and providing hand holding support to them for upgradation and availing of the credit.

For successful implementation of the scheme,  National Programme Management Unit and State Project Management Units have been set up to assist the Ministry and State Nodal Departments. One District One Product (ODOP) have been approved for 707 districts of the country based on the recommendations of the States/UTs. Under the Capacity Building component, institutional architecture for training including special courses suited for existing micro units in food processing, preparation of course material, videos, presentations and trainings are provided to Master Trainers and District Level Trainers of States/ UTs for providing training to micro enterprises, their workers, SHG members, etc. Incubation centers have been sanctioned in the States at Krishi Vigyan Kendra, food processing colleges and other institutions to provide processing lines for utilisation by micro units and training. National level research institutions dealing with food processing have been involved in capacity building, incubation center and research activities for the Scheme. MIS for online filing of applications has been developed and operationalised and applicants are filing applications that are being appraised at the district level, being recommended to the banks for sanction of credit.

For creating awareness amongst the masses about the scheme benefits, various activities have been undertaken such as Monthly E-Newsletter, social media campaigns, ODOP webinars/ workshops, success stories series etc.

29-Jun-2021: Pradhan Mantri Formalisation of Micro food processing Enterprises (PMFME) Scheme under Aatmanirbhar Bharat Abhiyan Completes One Year

The centrally sponsored Pradhan Mantri Formalisation of Micro food processing Enterprises (PMFME) Scheme, launched under the Aatmanirbhar Bharat Abhiyan, to enhance the competitiveness of existing individual micro-enterprises in the unorganized segment of the food processing industry and promote formalization of the sector, marks the completion of its one year.

Launched on 29th June 2020, the PMFME Scheme is currently being implemented in 35 States and Union Territories. The online portal for the application of the PMFME Scheme was made live on 25th January 2021. More than 9000 individual beneficiaries have registered on the portal, out of which more than 3500 applications have been successfully submitted under the scheme.

Milestones achieved under the PMFME Scheme

1. One District One Product: Under the One District One Product (ODOP) component of the PMFME Scheme, the Ministry of Food Processing Industries approved ODOP for 707 districts for 35 States and UTs, including 137 unique products as per the recommendations received by States/UTs. The GIS ODOP digital map of India has been launched to provide details of ODOP products of all the States and UTs. The digital map also has indicators for Tribal, SC, ST, and aspirational districts. It will enable stakeholders to make concerted efforts for its value chain development.
2. Convergence: Under the PMFME Scheme, the Ministry signed three joint letters with the Ministry of Rural Development, the Ministry of Tribal Affairs, and the Ministry of Housing and Urban Affairs. The Ministry of Food Processing Industries has signed six Memorandum of Understanding (MoUs) with the Indian Council of Agricultural Research (ICAR), the National Cooperative Development Corporation (NCDC), the Tribal Cooperative Marketing Development Federation of India (TRIFED), the National Agricultural Cooperative Marketing Federation of India Ltd. (NAFED), National Scheduled Castes Finance and Development Corporation (NSFDC), and Rural Self Employment Training Institutes (RSETI). An agreement has been signed with the Union Bank of India as the Nodal Bank of the scheme and MoUs with 11 banks as official lending partners for the PMFME Scheme.
3. Capacity Building and Incubation Centres: Under the Capacity Building component of the PMFME Scheme, the National Institute of Food Technology Entrepreneurship and Management (NIFTEM) and the Indian Institute of Food Processing Technology (IIFPT) have been performing a key role in providing training and research support to selected enterprises/groups/clusters in partnership with the State Level Technical Institutions. The training of 371 Master Trainers has been conducted under the Entrepreneurship Development Programme (EDP) & various food domains. NIFTEM & IIFPT have prepared training modules on 137 ODOPs which include 175 Presentations, 157 Videos, 166 DPRs, and 177 Course Content/Handbooks. Training of 469 District Level Trainers has been conducted in 18 States/UTs and in progress in other States. 491 District Resource Persons have been appointed across 302 districts. Under the scheme, 54 Common Incubation Centres have been approved in the 17 States and UTs like Karnataka, Uttar Pradesh, Rajasthan, J&K, Madhya Pradesh, Tamil Nadu, Telangana, Chhattisgarh, Himachal Pradesh, Kerala, Sikkim, Andaman & Nicobar, Andhra Pradesh, Meghalaya, Mizoram, Odisha, and Uttarakhand. The Ministry of Food Processing Industries in collaboration with the IIFPT has developed an online portal for submission of Common Incubation Centre proposals and an online common incubation centre map for the facilitation of details of incubation centres across the country.
4. Seed Capital: The component under PMFME for providing seed capital to SHGs is being implemented with the support of the National Rural Livelihood Mission (NRLM) and its network of State Rural Livelihood Mission (SRLMs) operating at the state level. The PMFME Scheme envisages financial support of Rs. 40,000 for working capital and purchase of small tools for each member of SHGs engaged in food processing activities. To date, NRLM has recommended 43,086 SHG members to State Nodal Agencies (SNA) for an amount of Rs. 123.54 Cr. SNA has approved the seed capital of 8040 members and disbursed the amount of Rs. 25.25 Cr. to SRLM.
5. Marketing and Branding: Under the scheme, MoUs have been signed with NAFED and TRIFED to take up the marketing and branding support for 10 products each. NAFED has selected products like Pineapple, Millet based products, Coriander, Makhana, Honey, Ragi, Bakery, Isabgol, Turmeric, and Cherry for branding and marketing support. TRIFED has selected products like Honey, Tamarind, Spices, Amla, Pulses/Grains/Millets, Custard Apple, Wild Mushroom, Cashew, Black Rice, and Wild Apple under the scheme.
6. Institutional Mechanism: All the 35 participating States and UTs have constituted/ identified their respective State Nodal Agencies, State Level Approval Committees, District Level Committees, and State Level Technical Institutions. Moreover, a call centre has been established at NIFTEM to address queries and guide the stakeholders of the Scheme.
7. Promotion and Publicity of the PMFME Scheme: The Ministry of Food Processing Industries in collaboration with States/UTs and Agricultural Universities is conducting nationwide promotion and publicity of the PMFME Scheme to sensitize the stakeholders via radio, print media, offline workshops, webinars, regional language brochures/booklets, outdoor publicity, and over digital media via website, apps and social media platforms. The PMFME Scheme monthly e-newsletter is being sent to more than 5 lakh stakeholders. The PMFME Podcast series has been launched to interact with Agri-business incubators, industry experts, and startups. 

To commemorate 75 years of India’s Independence, under the Azadi Ka Amrit Mahotsav initiative, the Ministry of Food Processing Industries is conducting 75 Unique One District One Product (ODOP) webinars/offline workshops across the country in collaboration with States/UTs, NIFTEM, and IIFPT. A weekly series of success stories titled “Kahaani Sukshma Udyamon Ki” has been launched to bring 75 stories of existing micro food processing enterprises. 

About the PMFME Scheme: Launched under the Aatmanirbhar Bharat Abhiyan, the Pradhan Mantri Formalisation of Micro food processing Enterprises (PMFME) Scheme is a centrally sponsored scheme that aims to enhance the competitiveness of existing individual micro-enterprises in the unorganized segment of the food processing industry and to promote formalization of the sector and provide support to Farmer Producer Organizations, Self Help Groups, and Producers Cooperatives along their entire value chain. With an outlay of Rs. 10,000 crore over a period of five years from 2020-21 to 2024-25, the scheme envisions to directly assist the 2,00,000 micro food processing units for providing financial, technical, and business support for upgradation of existing micro food processing enterprises.

8-Apr-2021: Convergence between Ministry of Food Processing Industries and Ministry of Rural Development for the Pradhan Mantri Formalization of Micro Food Processing Enterprises Scheme

Convergence between various schemes of the Ministries has been one of the key agendas, government is trying to pursue, so that resource utilization is optimized and benefits to the masses are maximized.

With a view to provide financial, technical and business support for upgradation of existing micro food processing enterprises, the Ministry of Food Processing Industries (MoFPI) launched an all India “Centrally Sponsored Pradhan Mantri Formalization of Micro Food Processing Enterprises (PM FME) Scheme” to be implemented over a period of five years from 2020-21 to 2024-25 with an outlay of Rs 10,000 crores.

MoFPI and Deendayal Antyodaya Yojana – National Rural Livelihood Mission (DAY-NRLM) of the Ministry of Rural Development (MoRD) agreed to work together on implementation of PM-FME to support Self Help Group (SHG) entrepreneurs in food processing.  Of all the components of the scheme, both Ministries decided to work closely on the component of providing seed capital support to SHG members. This involves working capital and purchase of small tools with the maximum permissible amount of support as Rs. 40,000/- per SHG member based on their existing business turnover and requirement. The concerned teams of both the Ministries at National level worked together in formalizing the operational framework for the scheme, the Guidelines, joint advisories, training and awareness campaigns etc. to facilitate the implementation of this component.

The State Rural Livelihood Missions in the States/UTs and the State Nodal Agencies appointed by MoFPI are executing the programme in close coordination. This involves identification of targeted eligible beneficiaries, capturing their aspirations & growth plans in the form of applications, digitize, review, recommend and approve them. 

During the FY 2020-21 a total 17427 beneficiaries were scrutinized and recommended for seed capital support of Rs. 51.85 cr. The States of Andhra, Arunachal Pradesh, Assam, Chhattisgarh, Maharashtra, Mizoram, Odisha and Telangana have been pioneer and contributed to over 83% of total beneficiaries and 80% of the total fund demand in these recommendations.

So far, an amount of 29.01 cr. has been approved towards the seed capital support for 10314 beneficiaries covering 6694 enterprises from the States of Andhra Pradesh, Chhattisgarh, Goa, Gujarat, Haryana, HP, Karnataka, Madhya Pradesh, Maharashtra, Meghalaya, Odisha, Rajasthan, Sikkim, Telangana, Tripura, Uttar Pradesh. The States are in process of releasing funds to respective SHGs and SHG members through the network of community organizations like Cluster Level Federations (CLFs) and Village Organizations (VOs).

A robust system is also being developed for regular monitoring of the rural food processing enterprises operationalized by SHG members and supported under this scheme. This convergence has leveraged the strength of both the Ministries and is sure to empower rural women livelihoods in the critical sector of food processing.

9-Feb-2021: One District One Product Approach for PMFME

As part of AatmaNirbhar Bharat Abhiyan, Ministry of Food Processing Industries has launched the centrally sponsored PM Formalisation of Micro Food Processing Enterprises (PMFME) Scheme for providing financial, technical and business support for upgradation of two lakh micro food processing enterprises. With an outlay of Rs. 10,000 Crore over a period of five years from 2020-21 to 2024-25, the scheme aims to enhance the competitiveness of existing micro-enterprises in the unorganized segment of the food processing industry and promote formalization of the sector.

There are about 25 lakh unregistered food processing enterprises in the country. Nearly 66% of these units are located in rural areas.

The Scheme adopts One District One Product (ODOP) approach to reap benefits of scale in terms of procurement of inputs, availing common services and marketing of products. So far, ODOPs for 135 unique products in 707 districts in 35 States/UTs has been approved by the Ministry.

The unorganized food processing industry in India faces various challenges including: (a) capital deficiency and low bank credit; (b) lack of productivity and innovation due to limited skills and access to modern technology and machinery for production and packaging; (c) lack of branding & marketing skills and inability to integrate with the supply chains; (d) deficient quality and food safety control systems, including lack of basic awareness on good hygienic and manufacturing practices;

The PMFME scheme envisages to reduce wastage, creation of off-farm job opportunities and aids in achieving the overarching objective of doubling the farmers’ income.

The objectives of the scheme, inter-alia, include

1. building the capability of micro enterprises by enabling the increased access to credit by existing micro food processing entrepreneurs, FPOs, Self Help Groups and Co-operatives;
2. integration with organized supply chain by strengthening branding & marketing;
3. iii) supporting the transition process of the existing two lakh micro food processing enterprises into formal framework; providing access to common services like common processing facility, laboratories, storage, packaging, marketing and incubation services;
4. Strengthening of institutions, research and training in the food processing sector, and enhancing the access to professional and technical support.

18-Nov-2020: Shri Narendra Singh inaugurates capacity building component of the PM-FME Scheme

Union Minister for Food Processing Industries Shri Narendra Singh Tomar in the presence of Shri Rameswar Teli, MoS, FPI virtually inaugurated the capacity building component of the Pradhan Mantri Formalisation of Micro food processing Enterprises scheme (PM-FME Scheme) and launched the GIS One District One Product (ODOP) digital map of India.

Speaking on the occasion, Shri Tomar said, “Our Honorable Prime Minister Shri Narendra Modi ji’s resolve is to make India self-reliant. The way forward is in local - local manufacturing, local market, and local supply chain. Under the PM-FME scheme, capacity building is an important component. The scheme envisages imparting training to food processing entrepreneurs, various groups, viz., SHGs / FPOs / Co-operatives, workers, and other stakeholders associated with the implementation of the scheme”.

He congratulated the officials of the Ministry and all those involved in the planning and monitoring of the successful implementation of the scheme and observed the day as the beginning of a new initiative to encourage the micro-entrepreneurs.

Shri Teli in his keynote address said, “The training of Master Trainers aims to benefit nearly 8 Lakhs beneficiaries from micro-enterprises including members of Farmer Producer Organizations, Self-Help Groups, Cooperatives, Tribal communities, and others. The digital ODOP map provides detailed information about ODOP product to all stakeholders”.

Under the capacity building component of the PM-FME scheme, training of the Master Trainers would be delivered through online mode, classroom lecture and demonstration, and self-paced online learning material. NIFTEM and IIFPT are playing a key role by providing training and research support to selected enterprises/groups/clusters in partnership with State Level Technical Institutions. The Master Trainers will train the District Level Trainers, who will train the beneficiaries. The current training is based on Fruits and Vegetable processing & EDP. For this purpose, subject experts from various national level reputed institutions are holding various sessions. The assessment and certification of the training program under the capacity building will be provided by FICSI. The capacity building component was launched yesterday.

Under the PM-FME scheme, states have identified the food products of districts, keeping in view the availability of existing clusters and raw materials. The GIS ODOP digital map of India provides details of ODOP products of all the states and facilitate the stakeholders. The digital map also has indicators for tribal, SC, ST, and aspirational districts. It will enable stakeholders to make concerted efforts for its value chain development.

About the PM-FME Scheme

Launched under the Aatmanirbhar Bharat Abhiyan, the Pradhan Mantri Formalisation of Micro food processing Enterprises (PM-FME) Scheme is a centrally sponsored scheme aims 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 provide support to Farmer Producer Organizations, Self Help Groups, and Producers Cooperatives along their entire value chain. With an outlay of Rs. 10,000 crore over a period of five years from 2020-21 to 2024-25, the scheme envisions to directly assist the 2,00,000 micro food processing units for providing financial, technical, and business support for upgradation of existing micro food processing enterprises.

29-Jun-2020: PM FME Scheme to generate total investment of Rs 35,000 crore and 9 lakh skilled and semi-skilled employment

Minister for Food Processing Industries Smt. Harsimrat Kaur Badal launched the PM Formalization of Micro Food Processing Enterprises (PM FME) scheme on 29th June 2020 as a part of “Aatmanirbhar Bharat Abhiyan”, in the presence of MoS, FPI Sh. Rameswar Teli. Union Minister said that the Scheme would generate total investment of Rs 35,000 crore and generate 9 lakh skilled and semi-skilled employment and benefit 8 lakh units through access to information, training, better exposure and formalization.  The guidelines of the Scheme were released on the occasion.

Highlighting the role of local food processing units, Union Minister said that food products manufactured by the rural entrepreneurs in the villages have a long tradition of supplying Indian food products to the local population. The importance of these local units and their role has been amply emphasised by the Hon’ble Prime Minister in his Address to the Nation on 12.5.2020.

“In times of crisis, this Local has fulfilled our demand, this Local has saved us. Local is not just the need, it is our responsibility also. Time has taught us that we must make the Local as a mantra of our life. The Global Brands you feel today were sometimes also very local like this. But when people started using them, started promoting them, branding them, proud of them, they became Global from Local Products. Therefore, from today every Indian has to become vocal for their local, not only to buy local products, but also to promote them proudly. I am confident that our country can do this.”

Speaking about the challenges faced by food processing sector, Smt. Badal said that the unorganised food processing sector faces a number of challenges which limit their performance and their growth. She added that these challenges include lack of access to modern technology & equipment, training, access institutional credit, lack of basic awareness on quality control of products; and lack of branding & marketing skills etc. She shared that owing to these challenges, the unorganised food processing sector contributes much less in terms of value addition and output despite its huge potential.

Union FPI Minister said that the unorganized food processing sector comprising nearly 25 lakh units contribute to 74% of employment in food processing sector. Nearly 66% of these units are located in rural areas and about 80% of them are family-based enterprises supporting livelihood rural household and minimizing their migration to urban areas. These units largely fall within the category of micro enterprises.

Details of the PM FME scheme

With a view to providing financial, technical and business support for upgradation of existing micro food processing enterprises, the Ministry of Food Processing Industries (MoFPI) has launched an all India “Centrally Sponsored PM Formalisation of Micro food processing Enterprises (PM FME) scheme” to be implemented over a period of five years from 2020-21 to 2024-25 with an outlay of Rs 10,000 crore. The expenditure under the scheme would to be shared in 60:40 ratio between Central and State Governments, in 90:10 ratio with North Eastern and Himalayan States, 60:40 ratio with UTs with legislature and 100% by Centre for other UTs.

The Scheme adopts One District One Product (ODODP) approach to reap benefit of scale in terms of procurement of inputs, availing common services and marketing of products.  The States would identify food product for a district keeping in view the existing clusters and availability of raw material. The ODOP product could be a perishable produce based product or cereal based products or a food product widely produced in a district and their allied sectors. Illustrative list of such products includes mango, potato, litchi, tomato, tapioca, kinnu, bhujia, petha, papad, pickle, millet based products, fisheries, poultry, meat as well as animal feed among others. Preference would be given to those producing ODOP products. However, units producing other products would also be supported. Support for common infrastructure and branding & marketing would be for ODOP products. The Scheme also place focus on waste to wealth products, minor forest products and Aspirational Districts.

Existing Individual micro food processing units desirous of upgradation of their unit can avail credit-linked capital subsidy @35% of the eligible project cost with a maximum ceiling of Rs.10 lakh per unit. Seed capital @ Rs. 40,000/- per SHG member would be provided for working capital and purchase of small tools.  FPOs/ SHGs/ producer cooperatives would be provided credit linked grant of 35% for capital investment along the value chain.  Support would be provided through credit linked grant @ 35% for development of common infrastructure including common processing facility, lab, warehouse, cold storage, packaging and incubation center through FPOs/SHGs/cooperatives or state owned agencies or private enterprise to use by micro units in the cluster. Support for marketing & branding would be provided to develop brands for micro units and groups with 50% grant at State or regional level which could benefit large number of micro units in clusters.

The Scheme places special focus on capacity building and research. NIFTEM and IIFPT, two academic and research institutions under MOFPI along with State Level Technical Institutions selected by the States would be provided support for training of units, product development, appropriate packaging and machinery for micro units.

All the processes of the Scheme would take place on an MIS including applications by entrepreneurs, their processing, approval of various projects by the States and MoFPI, release of grant and other funds and monitoring of the project. Individual entrepreneurs and other stake holders desirous of availing assistance under the scheme may contact the State Nodal Agencies of their respective states/ UTs regarding the roll out of scheme and contact points at the district level.

Extension of Operation Greens from TOP (Tomato-Onion-Potato) crops to all Perishable Fruits & Vegetables (TOP to Total)

Operation Greens Scheme, being implemented by MoFPI has been extended from tomato, onion and potato (TOP) crops to other notified horticulture crops for providing subsidy for their transportation and storage from surplus production area to major consumption centres.  The objective of intervention is to protect the growers of fruits and vegetables from making distress sale due to lockdown and reduce the post -harvest losses.

Eligible Crops: Fruits- Mango, Banana, Guava, Kiwi, Lichi, Papaya, Citrus, Pineapple, Pomegranate, Jackfruit; Vegetables: - French beans, Bitter Gourd, Brinjal, Capsicum, Carrot, Cauliflower, Chillies (Green), Okra, Onion, Potato and Tomato. Any other fruit/vegetable can be added in future on the basis of recommendation by Ministry of Agriculture or State Government

Duration of Scheme: – for the period of six months from the date of notification i.e., 11/06/2020.

Eligible entities: - Food Processors, FPO/FPC, Co-operative Societies, Individual farmers, Licensed Commission Agent, Exporters, State Marketing/Co-operative Federation, Retailers etc. engaged in processing/ marketing of fruits and vegetables.

Pattern of Assistance: - Ministry will provide subsidy @ 50 % of the cost of the following two components, subject to the cost norms:

• Transportation of eligible crops from surplus production cluster to consumption centre; and/or
• Hiring of appropriate storage facilities for eligible crops (for maximum period of 3 months).

Submission of claim for subsidy – Eligible entities, who comply with the aforesaid essential criteria may undertake the transportation and/or storage of notified crops from notified surplus production cluster, without any prior approval from MoFPI and thereafter submit their claim on online portal https://www.sampada-mofpi.gov.in/Login.aspx. The applicant should register on the portal before carrying out transportation/storage of fruits and vegetables.

Free on-line Skilling programme for the SC/ST Food Processors: Smt Harsimrat Kaur Badal, informed that MoFPI is planning to start free on-line skilling classes for SC and ST entrepreneurs, in collaboration with NIFTEM and FICSI, for providing e-learning. MoFPI has identified 41 courses and job roles like on baking, making jam, pickles, etc. for which access to digital content would be made available. Once certified, these entrepreneurs would have better employment potential, or they can start their own venture. She further informed that the participant handbooks and the facilitator's guide created by the Ministry, through NIFTEM, will be converted into e-learning format with suitable digital content and online assessment service. These will be made available in English, Hindi and other regional languages by FICSI on web and on android based app on mobiles.