In a decisive move to support the growth and formalization of the micro food processing sector, the Ministry of Food Processing Industries (MoFPI) has intensified its efforts through the Pradhan Mantri Formalization of Micro Food Processing Enterprises (PMFME) Scheme. This initiative, a cornerstone of the Atmanirbhar Bharat Abhiyan, aims to bolster micro enterprises in the food processing industry by providing comprehensive financial, technical, and business support. The scheme, operational from 2020-21 to 2024-25, is designed to transform the sector, improve quality, and promote local products through a structured approach.
Scheme Objectives
The PMFME Scheme was launched with a total outlay of ₹10,000 crore and is geared towards supporting 2 lakh micro food processing enterprises across the country. The scheme adopts the One District One Product (ODOP) approach, focusing on the development of specific products in each district to leverage economies of scale in procurement, service availability, and marketing.
Key Approvals and Financial Assistance
As of June 30, 2024, the PMFME Scheme has approved 92,549 micro food processing enterprises for financial assistance. This support is instrumental in facilitating the setup and upgradation of enterprises, thereby promoting efficiency and growth in the sector.
Credit Linked Subsidy Component
The scheme includes a credit-linked subsidy component, which has sanctioned a total of 72,840 loans to beneficiaries. This includes 61,796 individual beneficiaries, 34 Farmers Producers Organizations (FPOs), 433 Self Help Groups (SHGs), and 19 Producer Co-operative Societies. This component aims to ease access to credit and enhance the financial viability of micro enterprises.
Capacity Building and Training
A crucial aspect of the PMFME Scheme is its focus on capacity building. The scheme has conducted 2,190 training sessions as of January 31, 2024, to equip new and existing micro food processing enterprises with the necessary skills and knowledge. These training programs cover various aspects of food processing and entrepreneurship, including quality control, hygiene standards, and business management.
Promotion of Local Products
The ODOP approach under the PMFME Scheme is designed to promote local products by developing value chains and aligning support infrastructure. This approach not only enhances the marketability of local products but also supports the scaling up of micro enterprises by providing access to resources, marketing support, and infrastructure development.
Challenges and Resolutions
Despite its successes, the PMFME Scheme faces challenges such as inadequate infrastructure in rural areas and the need for uniform implementation of regulations. MoFPI addresses these issues through regular follow-ups and reviews with states, lending banks, and other stakeholders. Support is also provided for project formulation, execution, access to credit, and linkages to machine and equipment manufacturers.
The PMFME Scheme is set to continue its pivotal role in strengthening India’s food processing sector. By addressing existing challenges and expanding support for micro enterprises, the scheme aims to drive sustainable growth, improve quality standards, and enhance the sector’s contribution to the national economy.
