PMFME — PM Formalisation of Micro Food Processing Enterprises
Ministry of Food Processing Industries (MoFPI) · Central government
A 35% capital subsidy, up to ₹10 lakh, funds micro food processing units under ODOP.
Open, rolling. Applications are accepted continuously — there is no deadline.
Key facts
- Subsidy amount
- Up to ₹10,00,000
- Instrument
- Subsidy
- Deadline
- Rolling
About this scheme
Individual micro food-processing units that are upgrading or setting up can avail a credit-linked capital subsidy of 35%, with a ceiling of ₹10 lakh. Additional assistance includes a branding and marketing grant of up to ₹50,000 for Self-Help Groups (SHGs), a common infrastructure grant for Farmer Producer Organisations (FPOs) and cooperatives, and support with Detailed Project Reports (DPRs) and handholding through District Resource Persons.
The scheme operates on the One District One Product (ODOP) approach.
Who can apply
- Eligible business forms
- Not specified
- Udyam registration
- Not specified
- MSME registration
- Not specified
- DPIIT startup recognition
- Not specified
- GST registration
- Not specified
- Where the business may be based
- Not restricted
- Individual micro food-processing enterprises (existing or new) - Farmer Producer Organisations (FPOs) - Self-Help Groups (SHGs) - Cooperatives - Producer groups - Preference for ODOP products of the district
How to apply
- Create an account on the PMFME portal at pmfme.mofpi.gov.in. - Determine the ODOP product assigned to your district and structure your project proposal to match it. - Secure a term loan approval from a scheduled bank or an eligible NBFC covering the project cost. - Submit the loan sanction letter, project report, Udyam Registration, and identity or land documents through the portal. - A District Resource Person (DRP), appointed by the state, offers complimentary guidance and assistance with the Detailed Project Report (DPR) if required. - Once the loan is disbursed, the 35% subsidy is applied to reduce your outstanding bank loan.
Frequently asked questions
What is PMFME?
Under the PMFME scheme, micro food-processing units can receive a credit-linked capital subsidy of 35%, capped at ₹10 lakh, to upgrade or establish facilities in line with the One District One Product (ODOP) approach.
Who is eligible?
Individual micro food-processing enterprises (existing or new), Farmer Producer Organisations (FPOs), Self Help Groups (SHGs), cooperatives, and producer groups are eligible. Priority is given to ODOP products of the district.
What is the maximum subsidy?
Individual units may receive a capital subsidy of up to ₹10 lakh, which equals 35% of the eligible project cost. Self-Help Groups (SHGs) are also eligible for an additional branding and marketing grant of up to ₹50,000.
What does credit-linked mean?
The subsidy is credit-linked: you must first obtain a term loan sanctioned by a bank or NBFC, after which the 35% subsidy is applied to reduce your outstanding principal.
Is equity taken?
The scheme does not take equity; it provides a non-repayable government subsidy tied to your bank loan for capital investment.
How do I apply?
Apply on the PMFME portal at pmfme.mofpi.gov.in with Udyam Registration, an ODOP-aligned project proposal, and a bank sanction letter. District Resource Persons (DRPs) offer free handholding support.
Sectors
- Agri Food Rural
Details last verified on 3 August 2026. Source: the issuer's published information.