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PMFME Scheme: Empower Artisans & Grow SMEs

The PMFME scheme, also known as the Pradhan Mantri Formalization of Micro Food Enterprises scheme, was launched by the Government of India…

By adstotally , in Uncategorized , at February 29, 2024

The PMFME scheme, also known as the Pradhan Mantri Formalization of Micro Food Enterprises scheme, was launched by the Government of India to address the challenges faced by the unorganized food processing sector in the country. It aims to support micro food processing enterprises and promote the ‘Vocal for Local’ campaign. The scheme has an outlay of Rs.10,000 crores for a period of 5 years and offers subsidies for common infrastructure developmentbranding and marketing, capacity building, research, and support to food processing units. Eligible individuals, FPOs, SHGs, and cooperatives can apply for the scheme through both online and offline modes.

Key Takeaways:

  • The PMFME scheme, also known as the Pradhan Mantri Formalization of Micro Food Enterprises scheme, aims to support micro food processing enterprises in India.
  • The scheme offers subsidies for common infrastructure developmentbranding and marketing, capacity building, research, and support to food processing units.
  • Eligible individuals, FPOs, SHGs, and cooperatives can apply for the scheme through both online and offline modes.
  • The scheme has an outlay of Rs.10,000 crores for a period of 5 years.
  • The PMFME scheme aligns with the ‘Vocal for Local’ campaign, promoting the growth of local food businesses.

PMFME Scheme Details

The PMFME scheme, also known as the Pradhan Mantri Formalisation of Micro Food Processing Enterprises scheme, aims to formalize the Indian food sector and support micro food processing enterprises. Implemented by the Ministry of Food Processing, this scheme is part of the Atmanirbhar Bharat Abhiyaan and aligns with the Vocal for Local campaign. Its primary goal is to enhance the growth and development of micro-enterprises in the unorganized food processing sector.

The PMFME scheme focuses on providing assistance to Farmer Producer Organizations (FPOs), producers’ cooperatives, and Self-Help Groups (SHGs) that are involved in the agri-food processing sector. By offering financial and infrastructure support, the scheme aims to boost the existing micro-enterprises and promote a self-reliant India. With a budget of Rs.10,000 crores allocated for a period of 5 years, the scheme provides a significant push for the growth of the food processing industry.

“The PMFME scheme plays a vital role in driving economic development by empowering the micro food processing sector through formalization. By supporting FPOs, cooperatives, and SHGs, the scheme aims to enhance their productivity and market access, thus contributing to the success of the Vocal for Local campaign.”

One of the key objectives of the PMFME scheme is to strengthen the value chain for micro food processing units. By linking these units with organized supply chains, the scheme increases their visibility and market reach. Additionally, the scheme provides support for capacity building, branding and marketing, and research activities, ensuring the holistic development of the food processing enterprises.

The PMFME scheme is a crucial initiative under the Atmanirbhar Bharat Abhiyaan, supporting the Indian government’s vision of a self-reliant nation. By providing financial incentives and infrastructure support, the scheme empowers micro food processing enterprises and promotes the growth of small and medium enterprises in the sector.

One District One Product (ODOP) Under PMFME Scheme

The PMFME scheme has adopted the One District One Product (ODOP) approach to promote the procurement, common services, and marketing of specific food products in each district. This approach aims to align support infrastructure and value chain development for the chosen food product.

Under ODOP, states identify and promote specific food products in their districts, such as:

  • Tomato
  • Litchi
  • Potato
  • Millet-based products

The scheme also provides support to traditional Indian herbal items in tribal regions.

Good infrastructure facilities, branding, and marketing support are offered to promote the selected food products.

Benefits of ODOP under PMFME SchemeInfrastructure Facilities
– Increased local production– Development of food processing units
– Enhanced market opportunities– Common infrastructure facilities
– Higher income generation– Cold storage and warehousing
– Preserving local traditions and products– Packaging and labeling infrastructure

PMFME Scheme List

The PMFME scheme covers various components of the food processing sector, providing support and initiatives to enhance the growth and development of micro food processing enterprises in India. The scheme focuses on the following key areas:

1. Common Infrastructure Development

The PMFME scheme offers support for the creation of common infrastructure for different entities such as Farmer Producer Organizations (FPOs), cooperatives, Self-Help Groups (SHGs), and private enterprises involved in food processing. This includes the establishment of processing centers, cold storage facilities, packaging units, testing laboratories, and common facilities for value addition.

2. Branding and Marketing

To promote processed food products, the PMFME scheme provides branding and marketing support. This includes assistance in creating brand identities, product packaging design, market research, and establishing strong marketing networks. These efforts contribute to enhancing the visibility and market reach of micro food processing enterprises.

3. Capacity Building and Research

The PMFME scheme emphasizes the development of skills and knowledge within the food processing sector. Training and capacity building programs are conducted to enhance the technical and managerial competencies of individuals, organizations, and institutions receiving grants under the scheme. Additionally, the scheme supports research and development activities to foster innovation and improve the overall efficiency of the food processing industry.

4. Support to Food Processing Units

The PMFME scheme provides financial assistance and subsidies to support the growth and expansion of food processing units. This includes funding for the upgradation of technology, machinery, and equipment, as well as the expansion of production capacity. The scheme aims to enhance the competitiveness and productivity of micro food processing enterprises.

ComponentsDescription
Common Infrastructure DevelopmentSupport for the creation of processing centers, packaging units, testing laboratories, cold storage facilities, etc.
Branding and MarketingAssistance in brand creation, product packaging design, market research, and marketing network establishment.
Capacity Building and ResearchTraining programs, skill development, knowledge enhancement, and research support for the food processing industry.
Support to Food Processing UnitsFinancial assistance, subsidies, and grants for technology upgradation, machinery, equipment, and production expansion.

By focusing on these key areas, the PMFME scheme aims to create an enabling environment for the growth of micro food processing enterprises, enhancing their competitiveness and contributing to the overall development of the food processing sector in India.

PMFME Scheme Subsidy

The PMFME scheme provides various subsidies to support micro food processing enterprises in India. These subsidies aim to provide financial assistance for infrastructure development, branding and marketing activities, and the purchase of small tools and working capital. Here are some key subsidies offered under the PMFME scheme:

Credit-Linked Capital Subsidy

The PMFME scheme offers a credit-linked capital subsidy of 35% of the eligible project cost for common infrastructure and capital expenditure. This subsidy aims to support the development of essential infrastructure and provide capital for the expansion or upgradation of food processing units.

Branding and Marketing Support

Micro food processing enterprises can benefit from branding and marketing support provided by the PMFME scheme. The scheme offers a subsidy of 50% of the overall expenses incurred for branding and marketing activities. This subsidy helps enterprises in promoting their processed food products and reaching a wider consumer base.

Seed Capital

Under the PMFME scheme, seed capital is provided to Self-Help Group (SHG) members engaged in food processing. This capital serves as an initial investment to support the establishment or expansion of micro food processing units run by SHG members, stimulating entrepreneurship and economic growth.

Credit-Linked Capital Subsidy for Individuals, Partnerships, FPOs, and Private Limited Companies

Individuals, partnerships, Farmer Producer Organizations (FPOs), and private limited companies are eligible for credit-linked capital subsidies under the PMFME scheme. This subsidy aims to provide financial assistance for the purchase of small tools, working capital, and other capital expenditures necessary for the operation and growth of food processing units.

The PMFME scheme subsidies play a crucial role in enabling micro food processing enterprises to overcome financial barriers and establish a strong foundation for growth and success.

PMFME Scheme Benefits

The PMFME scheme offers several benefits to micro food processing units. Here are the key benefits:

  1. Financial Assistance: The scheme provides financial assistance to improve the food processing facilities of micro food processing units. This assistance includes credit-linked subsidies, which help in covering the costs of infrastructure development and technology upgradation.
  2. Skill Training: The scheme focuses on building the capacity of entrepreneurs through skill training programs. These programs enhance their technical knowledge and equip them with the necessary skills to improve their food processing techniques and quality.
  3. Integration with Supply Chains: The PMFME scheme aims to increase the integration of micro food processing units with organized supply chains. This integration improves market access for these units, allowing them to reach larger customer bases and expand their business.
  4. Formalization: The scheme supports the formalization of existing micro food processing enterprises. It assists them in registering under the regulatory framework, making them eligible for various government schemes and benefits.

Quoting a Beneficiary:

“The PMFME scheme has been a game-changer for our micro food processing unit. The financial assistance provided has helped us upgrade our machinery and expand our production capacity. The skill training programs have also empowered us with the knowledge to produce high-quality food products. Through the integration with supply chains, we have been able to reach new markets and increase our sales. Overall, the scheme has transformed our business and helped us grow.” – Mr. Rajesh, Owner of a Micro Food Processing Unit.

PMFME Scheme Eligibility Criteria

The PMFME scheme offers various components to support the development of the food processing sector, including common infrastructure development, branding and marketing, capacity building and research, as well as support to food processing units. However, the eligibility criteria for each component may vary.

Common Infrastructure Development

To avail support for common infrastructure development, Farmer Producer Organizations (FPOs), cooperatives, and Self-Help Groups (SHGs) need to be engaged in the processing of One District One Product (ODOP) produce for a minimum of three years. Additionally, they should have a minimum turnover and internal resources to meet a percentage of the project cost.

Branding and Marketing

For branding and marketing support, applicants should meet the minimum turnover requirement for their product. Scale and scalability are also taken into consideration while determining eligibility.

Capacity Building and Research

Individual units, as well as groups processing ODOP products, are eligible to receive support for capacity building and research. Those who are seeking support for marketing and branding activities are also included in this category.

Support to Food Processing Units

Support to food processing units is open to individuals or partnership firms that have ownership rights and verified micro food processing units. These units should meet the necessary criteria set by the scheme.

Seed Capital

Seed capital is specifically provided to Self-Help Group (SHG) members engaged in food processing activities.

Meeting the eligibility criteria is essential to avail the benefits of the PMFME scheme. It ensures that the support provided under the scheme reaches deserving individuals, organizations, and enterprises, promoting the growth of the food processing sector in India.

PMFME Application Form

The application process for the PMFME scheme is straightforward and can be done online or offline. To apply, interested individuals or organizations need to fill out the appropriate application form based on their category. Here are the different categories and their respective application forms:

  • Farmer Producer Company: Form A
  • Cooperative Societies: Form B
  • Common Infrastructure: Form C
  • Self-Help Groups: Form D

The application forms can be obtained offline from the nearest Food Processing Industries Department office or downloaded from the official PMFME website. These forms require various details related to the applicant’s organization, turnover, project proposal, and other relevant information.

For offline applications, the filled-out forms need to be submitted to the respective District Magistrate or Director of the Food Processing Industries Department. Alternatively, applicants can choose to submit their filled-out forms online through the official PMFME website.

Ensure that all the necessary information is provided accurately and completely to avoid any delays or issues during the evaluation process.

Important Note:

When filling out the application forms, be sure to carefully read and follow the instructions provided. Incomplete or incorrectly filled-out forms may lead to the rejection of the application. Double-check all the details before submission to ensure a smooth application process.

CategoryApplication Form
Farmer Producer CompanyForm A
Cooperative SocietiesForm B
Common InfrastructureForm C
Self-Help GroupsForm D

PMFME Online Application

To apply for the PMFME scheme online, visit the official PMFME website and register as an applicant. The website provides an applicant registration portal where you can enter all the required details. Once you have registered, log in to your account and navigate to the dashboard. From there, select the “Apply Online” option to access the relevant application form.

The online application form should be filled out with all the necessary details, ensuring accuracy and completeness. Take your time to provide the information required, as this will help in the evaluation process. Double-check the form before submitting to avoid any errors or omissions.

After completing the form, click the submit button to submit your application through the online portal. Once submitted, you will receive a confirmation message acknowledging the successful submission of your application.

By opting for the online application process, you can enjoy the convenience and efficiency it offers. It eliminates the need for manual paperwork and enables you to apply from the comfort of your home or office. It also ensures faster processing and reduces the chances of errors or misplacement of documents.

If you encounter any difficulties during the online application process, you can reach out to the support team through the contact information provided on the PMFME website. They will be happy to assist you and address any concerns or queries you may have regarding the application.

Conclusion

The PMFME scheme, also known as the Pradhan Mantri Formalisation of Micro Food Processing Enterprises scheme, has emerged as a game-changer for the unorganized food processing sector in India. By empowering artisans and supporting small and medium enterprises, the scheme offers numerous benefits that drive growth and development in the industry.

One of the key advantages of the PMFME scheme is that it provides financial assistance to micro food processing units. This support plays a crucial role in improving infrastructure, upgrading technology, and expanding production capacity. Additionally, the scheme emphasizes skill training, enabling entrepreneurs to enhance their capabilities and compete effectively in the market.

Another significant benefit of the PMFME scheme is the marketing support it offers. Through branding initiatives and marketing strategies, the scheme aims to create visibility and promote the products of micro food processing units. This not only helps in generating awareness but also opens up new market opportunities, leading to increased revenue and growth.

The eligibility criteria for different components of the PMFME scheme vary, ensuring that deserving enterprises and individuals can avail themselves of the benefits. Furthermore, the application process for the scheme is designed to be accessible, with options to apply both online and offline. This streamlined approach simplifies the application process and encourages wider participation.

By harnessing the opportunities provided by the PMFME scheme, the unorganized food processing sector in India can overcome challenges such as limited resources, lack of market access, and technological constraints. With financial assistance, skill development, and marketing support, micro food processing units can thrive, contributing to the overall development of the country’s food processing industry.

FAQ

What is the PMFME scheme?

The PMFME scheme, also known as the Pradhan Mantri Formalisation of Micro Food Processing Enterprises scheme, is a government initiative launched to support micro food processing enterprises and promote the ‘Vocal for Local’ campaign. It aims to formalize the Indian food sector and provide subsidies for common infrastructure development, branding and marketing, capacity building, research, and support to food processing units.

What are the benefits of the PMFME scheme?

The PMFME scheme offers financial assistance, skill training, and marketing support to micro food processing units. It aims to empower artisans and grow small and medium enterprises in the food processing sector. The scheme also focuses on integrating micro food processing units with organized supply chains, increasing market access, and promoting the formalization of existing enterprises.

What is the eligibility criterion for the PMFME scheme?

The eligibility criteria for the PMFME scheme vary for different components. For common infrastructure development, FPOs, cooperatives, and SHGs should be engaged in processing the ODOP produce for at least three years. Eligibility for branding and marketing support is based on the minimum turnover and scalability of the product. Capacity building and research support is available to individual units, groups processing ODOP products, and those receiving support for marketing and branding. Support to food processing units is open to individuals or partnership firms with ownership rights and verified micro food processing units.

How can I apply for the PMFME scheme?

The PMFME scheme application can be submitted online or offline. There are separate application forms for different categories, including Farmer Producer Companies, Cooperative Societies, Common Infrastructure, and Self-Help Groups. The forms can be obtained and filled out offline or submitted online through the official PMFME website.

How can I apply for the PMFME scheme online?

To apply for the PMFME scheme online, visit the official PMFME website and register as an applicant. Once registered, applicants can log in to their accounts and choose the “Apply Online” option from the dashboard. The applicable form can be filled out with all the necessary details and submitted through the online portal.

What are the components covered under the PMFME scheme?

The PMFME scheme covers common infrastructure development, branding and marketing, capacity building and research, and support to food processing units. It provides subsidies for the creation of common infrastructure, branding and marketing activities, and the expansion or technology upgradation of food processing units. Training and capacity building programs are also conducted to improve the skills of individuals and institutions receiving grants under the scheme.

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