Government Schemes · Farmer Schemes
PM Formalisation of Micro Food Processing Enterprises (PMFME)
35% capital subsidy, up to Rs 10 lakh, for micro food processing units
FarmersLabourAll of India
Updated on 16 Oct 2026
What you get
The Ministry of Food Processing Industries' scheme helps micro food processing units start, upgrade and formalise. An individual unit gets a credit-linked capital subsidy of 35% of the eligible project cost, up to Rs 10 lakh: the owner puts in at least 10% and the rest is a bank loan, and the cost of land is not counted. Self Help Group members can get seed capital of Rs 40,000 each for working capital and small tools, given to their federation and lent on to members. Farmer Producer Organisations and producer cooperatives get a 35% credit-linked grant, and the scheme also supports common infrastructure, branding and marketing, and training. Products on the district's One District One Product (ODOP) list get priority. The scheme was approved for 2020-21 to 2025-26.
Who can apply
For an individual unit: the owner (proprietor or partner), above 18 years of age and at least class 8 pass, of an unincorporated micro food processing unit with fewer than 10 workers, willing to put in 10% of the project cost and take a bank loan. Only one person per family (self, spouse and children) can get the assistance. Units making the district's ODOP product are preferred, and a new unit qualifies only for an ODOP product. Self Help Groups, Farmer Producer Organisations and cooperatives in food processing apply for their own support.
How to apply
Apply online on the PMFME portal. A District Resource Person checks the unit and helps prepare the Detailed Project Report and the bank loan application, and the District Level Committee recommends the case to the bank.
Documents you need
- Detailed Project Report, prepared with the District Resource Person
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