Overview of the Scheme
Strengthening India’s Micro Food Processing Ecosystem through PMFME: The Pradhan Mantri Formalisation of Micro Food Processing Enterprises (PMFME) Scheme aims to strengthen India’s vast micro food processing ecosystem. It focuses on improving competitiveness, expanding market access, and driving formalisation among informal-sector units. The scheme aligns with India’s larger goal of boosting rural entrepreneurship and supporting value addition in the food sector.
Static GK fact: India’s food processing sector contributes nearly 10% to the total employment in the manufacturing segment.
Progress Across Key Components
The scheme recorded major progress as of 31 October 2025. A total of 1,62,744 loans were sanctioned under the credit-linked subsidy component, reflecting strong demand for financial assistance. Approvals for 3,65,935 self-help group (SHG) members under seed capital support show the scheme’s role in promoting grassroots entrepreneurship.
Static GK fact: SHGs were first promoted nationwide under the NABARD-led SHG–Bank Linkage Programme in 1992.
Infrastructure and Enterprise Development
PMFME has approved 101 Common Infrastructure Facilities, enabling shared access to processing and storage facilities. Additionally, 76 incubation centres have been sanctioned to support skill development, innovation and product diversification. These centres help micro-enterprises meet food safety standards and adopt better processing techniques.
Static GK Tip: Incubation centres are supported under multiple government initiatives, including the Start-up India programme launched in 2016.
Branding and Marketing Interventions
A total of 27 proposals have been cleared under the Branding and Marketing component. These interventions help micro-units improve packaging, product visibility and market penetration. By strengthening brand identity, the scheme makes it easier for local products to enter organised retail chains and e-commerce platforms.
Static GK fact: India’s e-commerce sector is one of the fastest-growing globally and is projected to cross USD 100 billion by 2027.
Financial Support Trends
Central financial assistance for PMFME has steadily increased. The Centre released ₹367.61 crore in 2020–21, ₹297.44 crore in 2021–22, ₹268.52 crore in 2022–23, ₹765.30 crore in 2023–24 and ₹1142.56 crore in 2024–25. This rising allocation indicates growing recognition of food processing as a key sector for rural income enhancement.
Static GK fact: The Ministry of Food Processing Industries (MoFPI) was established in 1988.
Outreach and Capacity Building
To increase scheme adoption, MoFPI has conducted national and state-level outreach through advertisements, radio campaigns, exhibitions and buyer–seller meets. These measures build awareness and help entrepreneurs understand financing options, technology needs and market opportunities. The scheme actively supports women-led enterprises, promoting inclusive growth across rural and semi-urban regions.
Static GK Tip: Women-led food enterprises are key contributors to India’s cottage industry sector.
Static Usthadian Current Affairs Table
Strengthening India’s Micro Food Processing Ecosystem through PMFME:
| Topic | Detail |
| Loans sanctioned | 1,62,744 credit-linked subsidy loans approved |
| Seed capital support | 3,65,935 SHG members supported |
| Incubation centres | 76 centres sanctioned |
| Common infrastructure | 101 proposals approved |
| Branding support | 27 proposals cleared |
| Centre allocation 2024–25 | ₹1142.56 crore released |
| Scheme focus | Formalisation and competitiveness of micro food units |
| Key ministry | Ministry of Food Processing Industries |
| Outreach activities | Campaigns, expos, radio and buyer–seller meets |
| Target beneficiaries | Micro and women-led food enterprises |
