PMFME SHG Seed Capital
Ministry of Food Processing Industries (MoFPI) · Central government
PMFME funds food-processing SHG members with Rs 40,000 seed capital each for working capital and small tools.
Open, rolling. Applications are accepted continuously — there is no deadline.
Key facts
- Subsidy amount
- Up to ₹40,000
- Instrument
- Subsidy
- Deadline
- Rolling
About this scheme
Clause 5.3.2(i) of the PM Formalisation of Micro Food Processing Enterprises (PMFME) Scheme guidelines provides seed capital of Rs 40,000 per member of a Self Help Group engaged in food processing.
The funds are designated for two purposes specified in the guidelines: working capital and the purchase of small tools. The support targets SHG members who are either operating or commencing a small food processing activity—such as grinding, drying, packaging, pickling, or snack making—and require an initial infusion of operating funds and basic equipment rather than a substantial machinery loan.
Who can apply
- Eligible business forms
- Not specified
- Udyam registration
- Not specified
- MSME registration
- Not specified
- DPIIT startup recognition
- Not required
- GST registration
- Not specified
- Where the business may be based
- Not restricted
- Must be a member of a Self Help Group engaged in food processing. - Seed capital is provided per member, not per group. - Funds may be used for working capital and for purchasing small tools.
How to apply
- Confirm that the Self Help Group operates in food processing and is registered under the PMFME scheme via the State Rural Livelihood Mission. - Members who wish to take up food processing submit their application through the SHG, specifying the nature of their work. - The SHG federation aggregates the seed capital needs of each member. - Working capital and minor equipment are funded through a seed capital disbursal of Rs 40,000 per member. - Monitor developments on the PMFME portal at pmfme.mofpi.gov.in.
How applications are assessed
Members are selected through the self-help group (SHG) and its federation, operating under the State Rural Livelihood Mission. Their engagement in food processing is verified before seed capital is disbursed individually to each member.
Frequently asked questions
How much seed capital is given?
The subsidy provides Rs 40,000 per member of the Self Help Group.
What can it be used for?
Working capital requirements and the acquisition of small tools are eligible for financing.
Is it per group or per member?
Per member of the SHG.
Do I need a bank loan for this?
No. Seed capital under the scheme is meant for working capital and tools, unlike the credit-linked capital subsidy.
Who is eligible?
Self-help group (SHG) members involved in food processing are eligible under the PMFME scheme.
Sectors
- Agri Food Rural
- Pmfme
- Shg
- Self Help Group
- Seed Capital
- Food Processing
- Working Capital
Details last verified on 9 September 2026. Source: the issuer's published information.