The government has taken significant steps to empower self-help groups (SHGs) engaged in the food processing industry. The Ministry of Food Processing Industries has initiated several measures to provide financial assistance and incentives to SHGs under its various schemes. Under the Prime Minister’s Formalization of Micro Food Processing Enterprises (PMFME) scheme, the government offers an initial grant of up to ₹40,000 to each SHG member.
As part of this scheme, individual SHG members operating as single-unit food processing enterprises are entitled to credit-linked subsidies at the rate of 35% of the project cost, with a maximum subsidy amount of ₹10 lakh. Additionally, SHG members are also supported under the Prime Minister Kisan Sampada Yojana (PMKSY), which offers them opportunities to further develop their businesses in the food processing sector.
The Ministry has implemented this scheme through the State Rural Livelihood Missions (SRLMs) and State Urban Livelihood Missions (SULMs). So far, a total of ₹1,032.31 crores has been approved to support 3,10,121 SHG members. Of this amount, ₹810.89 crores have been allocated for 2,47,984 rural SHG members, and ₹221.42 crores for 62,137 urban SHG members. This assistance will be provided by October 31, 2024.
Additionally, under the credit-linked subsidy scheme, 692 SHG members engaged in food processing activities have also been approved for support, which will be disbursed by October 31, 2024. The objective of this comprehensive scheme is to make SHG members self-reliant in the food processing sector and to create employment opportunities in both rural and urban areas.
Union Minister of State for Food Processing Industries, Ravneet Singh Bittu, shared this information in a written reply in the Lok Sabha. He stated that this government initiative would play a crucial role in integrating small and medium enterprises in the food processing sector into the mainstream and strengthening their economic position.
The purpose of these government schemes is not only to promote the food processing industry but also to generate employment and boost the rural economy.
