PM FME - Pradhan Mantri Micro Food Industry Upgradation Scheme

 The Ministry of Food Processing Industries has launched "PM FME - Pradhan Mantri Micro Food Industry Upgradation Scheme" on all India basis to provide financial, technical and business support for upgradation of existing micro food enterprises in partnership with the State/UT Government.

The objectives of the scheme are as follows:-

• Assistance for capital investment for gst, FSSAI sanitation standards and registration for Udyog Base as well as upgradation and formalization.
• Capacity building through skilled training, technical knowledge on food safety standards and hygiene and quality improvement.
• Hand-holding assistance for preparation of bank credit and DPR.
• Assistance to Farmer Producer Organizations (FPOs), Self Help Groups (SHGs), Producer Cooperatives for capital investment, infrastructure and branding and marketing support.

One District One Product

    The scheme will provide an opportunity to avail the benefits of procurement of inputs, availing common services and marketing of products under one district one product approach. States will determine food products for a district taking into account the existing groups and raw materials. ODOP product can be a grain-based product based on perishable rotting produce or a food product widely produced in the district and their allied areas. For example, mango, potato, litchi, tomato, sabudana, kinnow, bhujia, petha, papad, pickle, coarse grain-based products, fisheries, poultry, meat and cattle feed. Priority will be given to those producing under the ODOP approach. However, enterprises producing other products will also be supported. Under the ODOP approach, support will be given for general infrastructure and branding and marketing for products.

Upgradation of Individual Micro Food Enterprises

    Micro food processing enterprises wishing to upgrade their enterprise can avail credit-linked capital subsidy at 35% of the scheme project cost, with a maximum subsidy of up to Rs 10 lakh per enterprise. The beneficiary's contribution should be a minimum of 10: and the balance should be a loan from the bank.

Assistance to FPOs, Self Help Groups and Cooperatives

Scheme 35: FPO/FPO/FPA for capital investment including entire value chain including credit-linked grant. Self Help Groups/ Provide support to productive cooperatives.

Initial capital to self-help groups

Initial capital will be provided to each member of self-help groups engaged in food processing for working capital and purchase of small tools at the rate of Rs.40,000/-. The initial capital in the form of grant will be given at the level of SHG Federation which will be given to the members in the form of loan through SHG.

general infrastructure

    Credit-linked grant at the rate of 35% will be provided to FPOs/SHGs/cooperatives, state-owned agencies and private entrepreneurs for development of infrastructure including general processing facility, laboratory, warehouse, cold storage, packing and incubation centre.

Branding and Marketing Support

    Branding and sales support will be provided to FPOs/SHGs/Cooperatives or Micro Food Processing Enterprises SPVs under the scheme by adopting ODOP approach to develop common packaging and branding, develop quality control, standardization and adherence to food safety parameters for consumer retailing. Assistance to these organizations will be given on the basis of DPR prepared by them and approval given by the State Nodal Agency. Support for branding and marketing will be limited to 50% of the total expenditure.

Application Process

    Existing food processing units wishing to avail assistance can apply on the FME portal. The district resource persons employed for field level support will provide hand-holding assistance for preparation of DPR, obtaining bank loans, necessary registration and obtaining FSSAI food standards, Udyog Aadhaar and GST. FPO/FPO Applications for support of Self Help Groups/Cooperatives, Common Infrastructure and Marketing and Branding can be sent to the State Nodal Agency including DPR. The state nodal agency will apprise the project for grant and banks will recommend for loans. The grant by the government will be credited to the beneficiary's account in the lending bank. If after a period of 3 years from disbursement of the last installment of the loan, if the beneficiary is repaying regular loans and interest and is working in an enterprise manner, then this amount will be adjusted in the bank account of the beneficiary. No interest will be charged by the bank for the grant amount in the loan.

Guidelines & Contacts

    The detailed guidelines of the scheme can be seen on the ministry's website mofpi.nic.in. Individual entrepreneurs and other interested persons may contact the State Nodal Agency of their States/UTs regarding launch of the scheme and contact points at district level.