Ministry of Food Processing Industries (MoFPI), in partnership with the States,
has launched an all India centrally sponsored "PM Formalisation of Micro Food
Processing Enterprises Scheme (PM FME Scheme)" for providing Financial,
technical and business support for upgradation of existing micro food
processing enterprises.
The objectives of the scheme are :
(i) Support for capital investment for upgradation and formalization with
registration for GST, FSSAI hygiene standards and Udyog Aadhar;
(ii) Capacity building through skill training, imparting technical knowledge
on food safety, standards & hygiene and quality improvement;
(iii) Hand holding support for preparation of DPR, availing bank loan and
upgradation;
(iv) Support to Farmer Producer Organizations (FPOs), Self Help Groups
(SHGs), producers cooperatives for capital investment, common
infrastructure and support branding and marketing.
One District One Product
The Scheme adopts One District One Product (ODOP) approach to reap the benefit
of scale in terms of procurement of inputs, availing common services and
marketing of products.
ODOP for the scheme will provide the framework for value
chain development and alignment of support infrastructure. There may be more
than one cluster of ODOP product in one district. There may be cluster of ODOP
product consisting of more than one adjacent district in a State.
The scheme would also support strengthening
of backward and forward linkages, provision of
common facilities, incubation centres, training,
R&D, marketing & branding, provision of which
would primarily be for ODOP products.
Upgradation of Individual Micro Food Processing
- Units
Individual micro food processing
units desirous of upgradation of their
unit can avail credit-linked capital
subsidy @35% of the eligible project
cost with a maximum ceiling of Rs.10
lakh per unit. The beneciar y
contribution should be minimum
10% and the balance should be loan
from a Bank.
- Support to FPOs / SHGs / Cooperatives
The scheme would provide support
t o F P O s/ S H G s/ P r o d u c e r
Cooperatives for capital investment
along the entire value chain with
credit linked grant @ 35%.
Seed Capital to SHG
Seed capital @ Rs. 40,000/- per SHG
member would be provided to those
engaged in food processing for
working capital and purchase of
small tools. Seed capital as grant
would be provided to the SHG
federation which, in turn, would be
extended to members as loan
through the SHGs.
- Common Infrastructure
Credit linked grant @35% would be provided to FPOs, SHGs, cooperatives,
State owned agencies and private entrepreneurs for development of common
infrastructure including common processing facility, lab, warehouse, cold
storage, packaging and incubation center
Branding and Marketing Support:
- Marketing and branding support would be provided at State or regional level to
FPOs/ SHGs/ Cooperatives or an SPV of micro food processing enterprises under
the scheme following the ODOP approach for developing common packaging &
branding with provision for quality control, standardization and adhering to food
safety parameters for consumer retail sale. These organisations would be
supported based on DPR prepared by them and recommended by the State Nodal
Agency.
- Support for branding and marketing would be limited to 50% of the total
expenditure.
Procedure for applying
Existing food processing units desirous of seeking assistance could apply online
on FME portal. The Resource Persons (RPs) engaged for eld level support would
provide handholding support for preparation of DPR, availing bank loan,
obtaining necessary registration and licences including food standards of FSSAI,
Udyog Aadhar and GST.
- Applications for support for FPOs / SHGs / cooperatives, common infrastructure
and marketing & branding could be submitted to the State Nodal Agency (SNA)
along with a DPR. The SNA would appraise the project and recommend it for
bank loan.
Grant by the Government would be deposited in the account of beneciary in the
lending bank. If after a period of three years from the disbursement of last
tranche of the loan, the beneciary account is still standard and the Unit is
operational, this amount would be adjusted in the bank account of beneficiary.
Upgradation of Processing Units
Individual Category: Individual micro food
processing units would be extended credit-linked
capital subsidy @35% of the eligible project cost
for expansion/ technology upgradation with
a maximum ceiling of Rs.10 lakh per unit. The
beneficiary contribution should be minimum
10% and the balance should be loan from a Bank.
Eligibility criteria:
(i) Individual / Partnership Firm with ownership
right of the enterprise;
(ii) Existing micro food processing units in the
survey or verified by the Resource Person;
(iii) The applicant should be above 18 years of
age and should possess at least VIII standard
pass educational qualification;
(iv) Only one person from one family is eligible
for obtaining financial assistance. The
“family” for this purpose would include self,
spouse and children.
Group Category:
The Scheme would provide
support in clusters to groups such as FPOs/
SHGs/ producer cooperatives along their entire
value chain. SHGs / FPOs / Producer Cooperatives
would be provided the following support:-
(i) Grant @35% with credit linkage for
capital investment with maximum limit as
prescribed;
(ii) Training support;
(iii) Support for marketing and branding for
products under ODOP for developing
common brand.
Eligibility Criteria:
(i) It should be engaged in processing of ODOP
produce for at least three years;
(ii) In case of FPOs / cooperatives, they should
have minimum turnover of Rs.1 crore and
the cost of the project proposed should not
be larger than the present turnover;
(iii) The SHG / cooperative / FPO should have
sufficient internal resources to meet 10%
of the project cost and margin money for
working capital.
Application Procedure
The State Nodal Agencies will now be accepting applications for Cooperatives, FPOs, SHGs and Common Infrastructure under the PMFME Scheme in physical form. Following documents need to be submitted by the beneficiaries and would be recommended by the State Nodal Authorities to MOFPI for availing credit-linked subsidy.
- Signed Hard Copy of the Completed Application Form (pdf).
- Soft copy of the Completed Application Form (Excel).
- Supporting Documents for application.
- Detailed Project Report in PDF or word format.
