The ministry of food processing industries has sought a five-year extension of the Pradhan Mantri Formalisation of Micro Food Processing Enterprises (PMFME) scheme, which provides a 35% credit-linked subsidy, a senior official said on Friday.
“We have submitted a proposal to extend the scheme for five years, which would also include increasing financing for micro enterprises engaged in the processing of food products and raising the credit -linked capital subsidy ceiling,” Devesh Deval, joint secretary, food processing industries ministry, said.
Scheme extended till September 2026
The scheme was launched in FY21 with an outlay of Rs 10,000 crore for five years and has been extended till September 30, 2026.
The scheme entails credit-linked subsidy on a project up to Rs 3 million each while promoter’s contribution has to be 10% of the project costs.
Over 2 lakh enterprises supported
Deval said that 2.06 lakh micro food processing enterprises have been supported through credit-linked subsidies amounting to Rs 6,000 crore against the project cost of Rs 20,400 crore.
More than 40% of beneficiaries are women entrepreneurs, he added.
Bihar leads in the number of beneficiaries availing the scheme, followed by Maharashtra, Uttar Pradesh, Tamil Nadu, and Madhya Pradesh. Processing of cereals, oil and oilseeds, and fruits and vegetables accounts for the bulk of activity.
The scheme implemented along with states supports individual micro-enterprises as well as farmer producer organisations (FPOs), shelf-help groups and cooperatives operating in the unorganised food processing segment.