PM FME Scheme – The unorganized segment of the food processing industry needs to enhance the competitiveness of existing individual micro-enterprises. This unorganized segment of the food processing industry also needs to be formalized. For this purpose, the state and Central Government have come together and launched Pradhan Mantri’s formalization of micro food processing enterprise (PM FME Scheme). Through this scheme, various kinds of financial incentives will be provided to farmer-producer organizations, self-help groups, and producers’ cooperatives along with their value chains.
This article provides you with complete details regarding this scheme like its registration, login, benefits, features, objective, eligibility criteria, required documents, selection procedure, etc. So if you want to take benefit of the PM FME scheme then you are requested to go through this article very carefully till the end.
About PM FME Scheme 2024
The central government along with various state governments has launched the PM FME Scheme. Through this scheme, 200000 micro food processing units will be covered with credit-linked subsidies. This scheme will formalize micro units by means of GST, Udyog Aadhaar, and FSSAI registration. Financial assistance will be provided to the individual units for upgrading their food processing facilities. Other than that quality improvement, setting up common infrastructure facilities, and skill development will be provided through training and technical knowledge. The Government has allocated a budget of 10,000 crores for a period of 5 years for the implementation of this scheme which is from 2020-21 to 2024 -25. This scheme also provides branding and marketing support. Farmer producer organizations, self-help groups, and producer cooperatives are covered under this scheme. The Ministry of food processing industries is responsible for implementing this scheme.
Objective Of PM FME Scheme
The main objective of the PM FME Scheme is to increase access to credit by the existing micro food processing enterprises, FPOs, self-help groups, and cooperatives. Through this scheme, the supply chain will be integrated by strengthening branding and marketing. The government is going to provide support to 200000 enterprises. This scheme also provides increased access to common services like common processing facility, laboratory, storage, packaging, marketing, incubation, etc. Other than that research and training in the food processing sector will also be carried out through this scheme. In order to strengthen the institutions this scheme also provides increased access to professional and Technical Support.
ODOP Webinar on Potato Processing in Madhya Pradesh is being organized by @MOFPI_GOI , @phdchamber & MP State Agro Industries Development Corporation, Government of Madhya Pradesh under the #PMFMEScheme for the #AzadiKaAmritMahotsav initiative.
25.08.2021। 11:00 am pic.twitter.com/iFqrblWDdA — PM FME Scheme (@PMFMEScheme) August 25, 2021
Details Of PM FME Scheme
| Name Of The Scheme | PM FME Scheme |
| Launched By | Government Of India |
| Beneficiary | Citizens Of India |
| Objective | To Cover Micro Food Processing Unit With Credit Linked Subsidy |
| Official Website | https://pmfme.mofpi.gov.in/ |
| Year | 2024 |
Benefits And Features Of PM FME Scheme
- The central government along with various state governments have launched PM FME scheme
- Through this scheme 2 lakh micro food processing unit will be covered with credit linked subsidy
- This scheme will formalise micro units by means of GST, udyog Aadhaar and FSSAI registration
- Farmer producer organisation, self help groups and producers cooperatives are covered under thi scheme
- The ministry of food processing industries is responsible for implementing this scheme
- Financial assistance will also be provided to the individual units through this scheme for upgrading their food processing facilities
- Other than that quality improvement, setting up common and infrastructural facilities and skill development will be provided through training and Technical knowledge
- The government has allocated a budget of Rs 10000 crore for a period of five years that is from 2020-21 to 2024 -25
- This scheme also provides branding and marketing support
Pradhan Mantri Kaushal Vikas Yojana
Expenditure Occurred In Implementing PM FME Scheme
Under the PM FME Scheme Rs 10000 crore will be spent for a period of 5 years for the implementation of this scheme. The expenditure incurred for implementing this scheme will be shared in 60:40 ratio between Central and state governments, 901:0 ratio with Northeastern and Himalayan States, 60:40 ratio with union territories with the legislature, and 100% by the centre for other union territories. This Scheme is launched as a part of Atma nirbhar Bharat Abhiyan in the year 2020 and is adopting one district one product approach. Under this scheme, credit-linked subsidies at the rate of 35% will be provided on eligible product costs with a ceiling of Rs 10 lakh.
Registration Statistics Under PM FME Scheme
| Total applications submitted | 18278 |
| Total ODOP applications submitted | 12543 |
| Total non ODOP applications submitted | 5724 |
| New Individual application submitted | 11754 |
| Existing individual application submitted | 6524 |
Components Of PM FME Scheme
- Support to individual and groups of micro enterprises
- Branding and marketing support
- Support for strengthening of institution
- Setting a progress project management framework
Support To Individual Micro Enterprise
Under the PM FME scheme, the government is going to provide credit-linked capital subsidies to the individual micro food processing units at the rate of 35% of the eligible product cost. This credit-linked capital subsidy will be provided with the maximum ceiling which is Rs 10 lakh per unit. The beneficiary is required to contribute at least 10% of the project cost with the balance being a loan from the bank. Technical knowledge, skill training, and handholding support services will be provided through this scheme so that the capacity of micro food entrepreneurs can be build
Eligibility Criteria Of Individual Micro Enterprise
- The enterprise must be engaged in food processing activities
- The micro enterprise should be in operation
- Only one person from a family can take the benefit of this scheme
- The age of applicant should be 18 years or more
- Applicant should have at least qualified 8th standard
- Only proprietorship or partnership firm can take the benefit of this scheme
- The applicant must have ownership rights of the Enterprise.
- The enterprise should be involved in the product identified in one district, one product of the district. Other potential units can also be considered
- The incorporation of enterprise should been done and the Enterprise to have employed at least 10 workers
- The cost of land should not be included in the project cost
- Cost of ready built along with long lease or rental worksheet can be included in project cost
- The lease rental of workshed which is included in project cost should be for a maximum period of 3 years
- The Entrepreneur should be willing to contribute 10% of project cost and obtain bank loan
Selection Procedure Of Individual Micro Enterprise
- For selection of individual micro enterprise identification group done
- Enterprise who are engaged in one district one product will provided preference
- Other enterprises who have potential will also get support through this scheme
- At the district level the applications will be invited
- Resource persons will also undertake surveys of clusters
- Resource person will identify doors and surprises which have potential for availing the benefit of this scheme
- For those applications that are received directly resource person will undertake field verification
- Applications received will be submitted before district level committee
- The district level committee will study the report submitted by resource person and interview the the interested candidates
- The details of report includes annual turnover of the enterprise, track record of payment by enterprise, existing infrastructure, backward and forward linkage, proximity to clusters and marketing linkage of the Enterprise
- For those cases that are recommended by district level committee resource person will help them in the preparation of DPR so that they can avail bank loan
- All the necessary documents along with DPR is required to be submitted to the bank for the sanction of loan
- The level to finalise individual micro units to be supported will be decided by State Government
Support To Group Category Under PM FME Scheme
The clusters and groups like farmer producer organisations, self-help groups, and producer cooperatives along with their entire value chain will be supported through the PM FME scheme. The support will be provided for sorting, grading, storage and processing, packaging, marketing, processing of Agri produce, etc. For this purpose, a grand at the rate of 35% with credit linkage will be provided. Other than that training support will also be provided through this scheme. The maximum limit of grant in such cases would be as prescribed
Eligibility Criteria Of Cooperative/FPOs
- The cooperative or farmer producer organisation should be preferably engaged in one district one product produce
- The cooperative or FPO must be engaged in food processing activities
- The maximum turnover of the enterprise should be at least Rs 1 crore
- The cost of project should not exceed the present turnover
- The members of the enterprise must have all the required knowledge and experience in dealing with product for at least three years
- The cooperative or farmer producer organisation must have sufficient internal resources or sanction from the state government in order to meet 10% of the project cost and margin money for working capital needs
Support To Self Help Groups Under PM FME Scheme
There are a lot of self-help groups that are engaged in food processing activities. Under the PM FME scheme financial assistance will be provided to the self-help groups. The details of this financial assistance is as follows:-
- Seed Capital- For working capital needs and purchase of tools a seed capital at the rate Rs 40000 per member of self help group will be provided. Those self help groups that are involved in one district one product produce will be given priority. All the members of the self help group may not be involved in food processing so seed capital will be provided at the federation level. This amount will be given in the form of a grant. The self help group federation is required to provide this amount as loan to the members of self help group
- Financial support- Under this scheme support will be provided to individual self help group member which credit-linked grand at the rate 35% the maximum amount of this grant is Rs 10 lakh
- Capital investment- At the federation of self help group level a credit-linked grant of 35% will be provided as a support for capital investment. The maximum limit of this grant will be prescribed from time to time
- Training and handholding support- Training and handholding support will also be provided to the self help groups. The state rural livelihood mission have a large number of trained resources persons. These persons have expertise in agro produce which would be utilised in training, upgradation of unit, handholding support etc
Eligibility Criteria For Seed Capital For Self Help Groups
- Only those self help group members can get the benefit of this scheme who are engaged in food processing.
- The amount of seed fund should be utilised for working capital and purchase of small tools
- The SHG should be engaged in food processing activity
- The self help group federation is required to collect the following details about each member of the self help group before providing the seed fund:-
- Source of raw material and marketing of produce
- Annual turnover
- Details of product being processed
- Other undertaken activities
Eligibility Criteria For Credit Linked Grant For Capital Investment For Self Help Groups
- The members of self help group should have minimum 3 years experience in producing the one district one product produce
- The self help group must have sufficient own funds for meeting 10% project cost and 20% margin money
- The SHG should be engaged in food processing activity
Support For Common Infrastructure Under PM FME Scheme
Under the PM FME scheme support for common infrastructure will be provided to self-help groups, cooperatives, farmer producer organizations, private enterprises,s or any government agency. The eligibility of a project will be decided on the basis of benefit to farmers and industry at large, viability gap, absence of private investment, etc. The support for common infrastructure for credit-linked grants will be available at 35%. The maximum limit of the grant will be decided from time to time. Incubation centre, common processing facility for processing one district one product produce, warehouse, cold storage, etc will be covered for infrastructure support.
Groups To Send Proposals For Common Infrastructure And Capital Investment
- A DPR for seeking assistance is required to be prepared
- The DPR should contain all the required details of the proposal like detailed proposal cost, proposed manpower, turnover, marketing channel etc
- This DPR should be sent to the state nodal agency
- After the approval of project SNA when we comment the proposal to MoFPI
- All the proposal for assistance to a group for grant above Rs 10 lakh should be sent to the ministry for approval
- After approval the proposal will be forwarded to the financial institution for the sanction of loan
- For the preparation of DPR assistance of Rs 50000 will also be provided
Branding And Marketing Support Under PM FME Scheme
Under the PM FME scheme marketing and branding support will be provided to farmer producer organizations, self-help groups, cooperatives,s or an SPV of micro food processing Enterprises. Marketing and branding supports will be provided for one district one product produce at the state or regional level. Any kind of training that is related to marketing will be fully funded under this scheme. This scheme will also provide assistance for developing a common brand and packaging. Other than that this scheme will also help in marketing tie-ups with National and regional retail chains and state-level institutions
Eligibility Criteria For Marketing And Branding Support
- The products and producers should be scalable to larger levels
- The proposal should establish the management and entrepreneur capability of promoting entity
- The applicant should be a FPO/SHG/cooperative/regional state level SPV
- The enterprise should engage in food processing activity
- The final product should be sold to the customer in retail pack
- The minimum turnover of the product should be Rs 5 crore
- The proposal should be related to one district one product
Coverage Of State/Union Territory And Funding Pattern
- This scheme is for all India centrally sponsored scheme with an initial outlay of Rs 10000 crore for coverage of 2 lakh enterprises over 5 years
- The expenditure that will be done on this scheme will be shared in 60:40 ratio between Central and state government
- In case of north eastern Himalayan state the ratio will be 90:10 among Central and state government
- The union territory with legislature the ratio will be 60:40 between state and Central Government
- In case of other union territory 100% funding will be done by central Government
- The expenditure in first year that is 2020-21, weather incurred by centre or the state would be borne by central government
- The expenditure that is made in the first year would be adjusted in ratio given above in the funds being transferred to the state equally in the next 4 years
- Based on the approved project implementation plan the fund under the scheme will be provided to the states
One District One Product Approach
- This form will be implemented in one district one product approach in order to reap benefit of scale in terms of procurement of inputs, availing common service and marketing of product
- However unit producing other products will also be provided support
Upgradation Of Food Processing Unit
- Individual micro food processing units will be extended credit linked capital subsidy at the rate of 35% of The Eligible products. Project cost for expansion or technological upgradation with the maximum ceiling of 10 lakh per unit
- The beneficiary contribution should be minimum 10% and the balance should be loan from the
- Applications will be invited at the district level on an ongoing basis for unit interested in availing the benefit of scheme
- Existing food processing unit desiring to seek assistance under the scheme should apply on the portal
- After scrutiny the loan proposal will be recommended to the banks
- The states will decide the appropriate level of shortlisting of the applications to be recommended to the banks
Procedure To Apply For Assistance Under Branding And Marketing
- A DPR is required to be prepared for the proposal which contains all the essential details regarding to the project like product, strategy, quality control, aggregation of produce, common packaging, branding etc
- The SNA will make avalaible a support up to Rs 500000 for the preparation of DPR
- The proposal has also require to contain flow chart of activities
Support To State Level Technical Institution
State-level Technical institutions will be nominated by the state government for PM FME Scheme. The state-level Technical Institution will be responsible for preparing PIP for the state-level technical institutions, providing inputs to PIP, conducting capacity-building training for district resource persons, provide input for branding and marketing plans, provide mentoring support to district resource person,s etc. The PIP prepared should include an annual training calendar for the proposed activities which will be sent to the ministry after approval of state-level approval committee
Eligibility Criteria Of State Level Technical Institution
- A state owned food processing technology research institution
- A college or institute under the state Agriculture University or any other University
- Institute under CSIR or any Government of India Institute focusing on food processing
- If the institute is college then it should have undergraduate or postgraduate courses in food processing technology
- The institute must have a laboratory with necessary equipments
- Institute should have the faculty undertaking research work and product development
- The proposal must be recommended by State Government
- The institute should have sufficient build up space
- Institute must have pilot plants for processing two products under one district one product
Training Support Under PM FME Scheme
Under the PM FME scheme training support will also be provided to individual units and Groups that are provided support for capital investment. Other than that training support will also be provided to existing units and Groups in the district that are producing one district one product produce. Those group that is being provided marketing and branding support will also be provided training support. A fixed per hour rate has been fixed by the ministry of skill development and entrepreneurship which is to be spent on training. The training will be provided through online modules. These modules will be of short duration. The training through these modules will be provided on weekly basis under audio-visual support with the district.
Procedure With Bank For Grant
- For the disbursement of subsidy at the national level a nodal bank will be appointed
- The bank that will sanction of loan is required to open a mirror account in the name of beneficiary
- The grant will be provided by central and state government in 60:40 ratio which will be deposited into the bank account of the beneficiary in the lending Bank branch by the state and Central Government
- If after a period of three years from the disbursement of last tranche of the loan the beneficiary account in standard and the unit is a professional then this amount will be adjusted in the bank account of the beneficiary
Implementation And Monitoring Mechanism Agencies
- Committee on capacity building and research
- National Apex institutions
- State level technical Institution
- Inter ministerial committee
- Project executive committee
- State level approval committee
- The State nodal department
- State nodal department agency
- District level committee
- National program management unit
- State program management unit Resource persons
Required Documents To Apply Under PM FME Scheme
- Aadhar card
- Residence proof
- Incorporation certificate
- Bank account
- Age proof
- Passport size photograph
- Mobile number
How To Apply Under PM FME Scheme
- First of all go to the official website of PM FME scheme
- The home page will open before you
- On the homepage you are required to click on online registration
- A new page will appear before you
- On this new page you have to click on sign up
- The registration form will appear before you
- You have to fill in the following information in this registration form:-
- Type of beneficiary
- Name
- Email ID
- Mobile number
- Address
- State
- District
- Now you have to click on the register
- After that, you have to log in on the portal
- You have to select beneficiary type
- Now you have to enter your user id and password
- After that you have to click on submit
- Now you have to click on apply now
- Application form will appear before you
- You have to enter all the required details in this application form
- After that you have to upload all the required documents
- Now you have to click on submit
- By following this procedure you can apply under PM FME Scheme
Procedure To Do Applicant Login
- Go to the official website of PM FME scheme
- The home page will open before you
- Now you are required to click on login
- After that you have to click on applicant login
- Login page will appear before you
- You have to select your beneficiary type
- Now you have to enter user id and password
- After that you have to click on submit
- By following this procedure you can do applicant login
Procedure To Do MIS Login
- Visit the official website of PM FME scheme
- The home page will open before you
- On the homepage you are required to click on login
- After that you have to click on MIS login
- Now you have to enter your user id and password
- After that you have to click on submit
- By following this procedure you can do MIS Login.
Some Important Information Regarding PM FME Scheme
- The district resource person of the district will provide support to micro enterprise in preparation of DPR, getting a bank loan, training, upgradation of unit, getting necessary regulatory approvals, hygiene etc
- The information regarding DRP can be obtained from the official website
- For any official purpose the beneficiaries can meet DRP at district industries centre
- If there is no DRP then beneficiary can contact district nodal officer
- Following enterprises can register for common infrastructure:-
- Cooperative society
- FPC
- SHG
- Limited liability partnership
- Partnership firm
- Private limited company
- Proprietorship
- Public limited company
- In order avail the benefit of the scheme the applicant should have existing infrastructure
- Under this scheme state level technical Institution will provide training
- The beneficiary is required to pay the EMI on time for the next three years
- If after three years the loan category is standard then the Subsidy amount will be credited into the bank account of the beneficiary
- Special allocation will be made for scheduled caste, scheduled tribe and North eastern region
- At the national level the nodal bank will be appointed for disbursement of subsidy
Contact Details
- Address-Panchsheel Bhawan, August Kranti Marg, Khelgaon, New Delhi-110049
- Phone: 011-26406500, +91 1302281089, +91-8168001500