PMFME — PM Formalisation of Micro Food Processing Enterprises
Ministry of Food Processing Industries (MoFPI) · Central government
A 35% capital subsidy of up to ₹10 lakh is available to micro food processing units under the ODOP scheme.
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
Under the PM Formalisation of Micro Food Processing Enterprises (PMFME) scheme, individual micro food-processing units can receive a credit-linked capital subsidy of 35%, subject to a ceiling of ₹10 lakh. This applies to units that are either being set up or upgraded.
Self-help groups are eligible for a separate branding and marketing grant of up to ₹50,000. Farmer producer organisations and cooperatives can access a grant for common infrastructure.
Applicants also receive assistance with preparing a detailed project report, along with handholding support from District Resource Persons. The scheme follows 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, whether existing or new - Farmer Producer Organisations (FPOs) - Self-Help Groups (SHGs) - Cooperatives - Producer groups - Preference given to products covered under the One District One Product (ODOP) initiative of the district
How to apply
1. Sign up on the PMFME portal at pmfme.mofpi.gov.in. 2. Find out which ODOP product is associated with your district, and shape your project proposal to match it. 3. Secure a term loan sanction covering the project cost from a scheduled bank or an eligible NBFC. 4. Submit the loan sanction letter, project report, Udyam Registration and identity/land documents through the portal. 5. A District Resource Person (DRP) appointed by the state offers free handholding, including DPR assistance where required. 6. Once the loan is disbursed, the 35% subsidy is adjusted against the outstanding bank loan.
Frequently asked questions
What is PMFME?
Under the PMFME scheme, micro food-processing units can receive a 35% credit-linked capital subsidy of up to ₹10 lakh for setting up or upgrading facilities, with the One District One Product (ODOP) approach guiding the scheme.
Who is eligible?
Eligibility extends to individual micro food-processing units, whether already operating or newly set up, along with FPOs, SHGs, cooperatives and producer groups. Applications tied to the district's ODOP products are given preference.
What is the maximum subsidy?
Individual units are eligible for a capital subsidy of up to ₹10 lakh, covering 35% of the eligible project cost. Self-help groups may also receive a branding and marketing grant of up to ₹50,000.
What does credit-linked mean?
The subsidy is credit-linked, so you must first obtain a term loan sanctioned by a bank or NBFC; the 35% subsidy is then applied to that loan, lowering your outstanding principal.
Is equity taken?
The scheme provides a non-repayable government subsidy tied to your bank loan for capital investment, and no equity is taken in return.
How do I apply?
Apply through the PMFME portal at pmfme.mofpi.gov.in, where you will need Udyam Registration, a project proposal aligned with ODOP, and a bank sanction letter. District Resource Persons (DRPs) offer free handholding support.
Sectors
- Agri Food Rural
Details last verified on 18 September 2026. Source: the issuer's published information.