Vocal For Local Initiative Taken In Food Processing Sector

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As part of Atmanirbhar Bharat Abhiyan – Vocal for Local Initiative in food processing sector, 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. Till date, 27,003 Loans have been sanctioned in the country under credit linked subsidy component of PMFME Scheme, out of which 5864 loans sanctioned in the State of Maharashtra. The State-wise details are at Annexure.

The PMFME scheme is designed to address the challenges faced by the micro enterprises. The scheme aims to enhance the competitiveness of new and existing individual micro-enterprises in the unorganized segment of the food processing industry and promote formalization of the sector. The details of assistance available to Micro Food Processing Enterprises under PMFME Scheme:

(i). Support to Individual / Group Category Micro Enterprises: Credit-linked capital subsidy @35% of the eligible project cost, maximum ceiling Rs.10 lakh per unit;

(ii). Support to SHGs for seed capital: Seed capital upto 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.

(iii). 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.

(iv). 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.

(v). 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.



Capacity building and training is a critical component of the scheme in technical upgradation and formalization of micro food processing enterprises. The focus areas for capacity building are entrepreneurship development, compliance of Food Safety and Standards Authority of India (FSSAI) standards and general hygiene and other statutory compliances. District Resource Persons (DRPs) have been appointed to provide handholding support to micro food processing enterprises for the compliance of FSSAI and other statutory requirements.

State-wise number of loans sanctioned under credit linked subsidy

component of PMFME Scheme

Sl. No.

State/UT

No. of Loans

Sanctioned

1

Andaman And Nicobar Islands

11

2

Andhra Pradesh

1937

3

Arunachal Pradesh

22

4

Assam

583

5

Bihar

2345

6

Chandigarh

5

7

Chhattisgarh

210

8

Dadra And Nagar Haveli And Daman And Diu

2

9

Delhi

94

10

Goa

41

11

Gujarat

100

12

Haryana

384

13

Himachal Pradesh

753

14

Jammu And Kashmir

212

15

Jharkhand

146

16

Karnataka

1922

17

Kerala

611

18

Ladakh

22

19

Madhya Pradesh

1468

20

Maharashtra

5864

21

Manipur

245

22

Meghalaya

30

23

Mizoram

5

24

Nagaland

24

25

Odisha

733

26

Puducherry

47

27

Punjab

935

28

Rajasthan

273

29

Sikkim

31

30

Tamil Nadu

3552

31

Telangana

1956

32

Tripura

46

33

Uttar Pradesh

2182

34

Uttarakhand

212

Total

27003