35% Credit-Linked Subsidy
Provides 35% capital subsidy on eligible project cost, with an upper ceiling of about ₹10 lakh per individual micro enterprise.
35% Subsidy for Micro Food
Units PMFME
PM Formalisation of Micro Food Processing Enterprises Scheme
Central scheme supporting existing and new micro food processing enterprises with 35%
credit-linked subsidy on
project cost, along with training, branding, marketing and common
infrastructure support.
Who Can Apply?
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Type of Enterprise
Existing or new micro food processing units in unorganised sector, including proprietorships, partnerships and small firms.
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Age & Citizenship
Individual applicants should typically be Indian citizens above 18 years with necessary business rights.
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Business Activity
Units involved in processing of fruits, vegetables, grains, dairy, oilseeds, animal feed, bakery and other eligible food products.
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Credit-Linked Support
Beneficiary must avail a bank loan; subsidy is linked to project cost and loan sanctioned for the food processing activity.
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Minimum Contribution
Beneficiary contribution is usually minimum 10% of project cost, with remaining funded through bank credit and subsidy.
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Formalisation & Compliance
Unit must move towards formalisation through registrations such as FSSAI, Udyam, GST and local licences as required.
Key Features
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Food Sector Focus
Specifically targets micro units in food processing value chains like fruits, vegetables, grains, spices, dairy, bakery and more.
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Support to Individuals & Groups
Assistance available for individual units as well as groups like FPOs, SHGs and cooperatives, with higher limits for group projects.
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Common Infrastructure
Scheme supports common processing facilities, incubation centres and other shared infrastructure in key clusters.
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Branding & Marketing
Additional grant support possible for branding, packaging and marketing of products, especially for cluster-based brands.
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Training & Handholding
Entrepreneurs receive capacity building, technical training and handholding support through state and district-level agencies.
Scheme Benefits
Reduces capital burden for setting up or upgrading micro food processing units through 35% subsidy.
Improves product quality, packaging and branding, enabling higher margins and new customers.
Encourages cluster development, common facilities and shared branding for small units.
Helps informal food businesses formalise and access organised supply chains and retail markets.
Supports adoption of better technology, hygiene standards and food safety compliance.
Leverages bank credit, reducing dependence on high-cost informal borrowing.
Application Process
01
Check Eligibility & Product
Confirm that your existing or proposed unit is a micro food processing enterprise and your products fall under eligible categories.
02
Prepare DPR & Registrations
Prepare a detailed project report with investment, cash flows and market plan; obtain or plan for Udyam, FSSAI and local registrations.
03
Apply through PMFME / State Portal
Submit your application online via the PMFME or designated state portal, or through the nodal agency, along with DPR and basic documents.
04
Bank Appraisal, Sanction & Subsidy
Bank appraises and sanctions the loan; after implementation and compliance, the 35% subsidy is processed and adjusted against loan.
FAQs
Frequently Asked
Questions
Questions
Individual micro food processing enterprises can receive a credit-linked capital
subsidy of 35% of eligible project cost, subject to a maximum of about ₹10 lakh
per unit.
Existing and new micro food processing units, including small proprietors,
partnerships, SHGs, FPOs and cooperatives involved in food processing
activities, can apply subject to meeting scheme norms.
No. The scheme supports both setting up new micro food units and upgradation or
expansion of existing units in the unorganised segment.
Yes. PMFME assistance is credit-linked, so you need to obtain a bank loan for
the project; the subsidy is calculated on eligible project cost and adjusted in
the loan account.
You can apply online through the PMFME portal or designated state portals, or
approach the state nodal department / bank with your DPR and required documents
for guidance and submission.
Contact
Let’s Build
Intelligent Things
Intelligent Things
E-mail address
Info@naavbharat.com
Phone number
+91 90812 22372