(PM FME) Pradhan Mantri Formalisation of Micro Food Enterprises Scheme 2023

Complete information of Pradhan Mantri Formalisation of Micro Food Enterprises Scheme 2023 mofpi.nic.in or pmfme.mofpi.gov.in | pmfme mofpi gov in | प्रधानमंत्री सूक्ष्म खाद्य उद्यम योजना | pm fme online application | pm fme scheme guidelines | m fme scheme in hindi

Dear reader, the Central Government launched the Pradhan Mantri Formalisation of Micro Food Enterprises (PM FME) Scheme on 29th June 2020. Is Rs 10,000 crore scheme was launched as part of Atmanirbhar Bharat Abhiyan. The new PM FME scheme will be implemented for a period of five years through 2024-25. The new formalization of the micro-food enterprise Scheme program will generate investments worth Rs. 35,000 cores. In addition, about 9 skilled and semi-skilled jobs will be created. About 8 lakh units will benefit through access to information, training, improved exposure, and formalization.

The Ministry of Food Processing Industries (MoFPI), in partnership with the State/UT Government, has launched a centrally sponsored PM scheme in India to formalize the Small Food Processing Enterprises Scheme to provide financial, technical, and commercial support to modernize existing programs. Small food processing companies.

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What’s New

Details of Pradhan Mantri Formalisation of Micro Food Enterprises Scheme – प्रधानमंत्री सूक्ष्म खाद्य उद्यम योजना

The country’s unregulated food processing sector includes approximately 25 lakh unregistered and informal food processing companies. With only 7% investment in plant and machinery and 3% of existing credit, unorganized firms contribute 74% of employment (one-third of which are women), 12% of production, and 27% of value-added in the food processing sector. Approximately 66% of these units are located in rural areas and about 80% of them are family establishments. Most of these units fall under the category of small manufacturing units in terms of their investment in plant and machinery and their turnover.

The Ministry of Food Processing Industries (MoFPI) has launched an all-India scheme called ‘Official Pradhan Mantri for Small Food Processing Enterprises’, in partnership with the State Government/UT under Aatmanirbhar Bharat Abhiyan which aims to enhance the competitiveness of individual micro-enterprises based in the unregulated part of the food processing industry and promoting sector formalization and support for Farmer Producer Organizations (FPOs), self-help groups (SHGs) and producer cooperatives along the entire value chain.

Under this scheme, 2,00,000 micro-food processing units will be directly assisted through credit-linked support. The joint supportive and adequate institutional structure and infrastructure will be supported to accelerate the growth of the sector.

• The objectives of the scheme are to build the capacity of small enterprises to enable.
• Increased access to credit by existing small food processing entrepreneurs, FPOs, self-help groups, and cooperatives.
• Integration with the organized supply chain through branding and marketing promotion.
• Support the transition of 2,00,000 existing companies to the official framework.
• Increased access to shared services such as shared processing facilities, laboratories, warehousing, packaging, marketing, and nursery services.
• strengthening institutions, research, and training in the food processing sector.
• Increase companies’ access to professional and technical support.
• The scheme is a centrally sponsored scheme designed to address the challenges faced by small enterprises and to take advantage of the potential of groups and cooperatives to support the upgrading and formalization of these enterprises.

One District One Product (ODOP)

The new PME scheme adopts a One District One Product (ODOP) approach to capitalize on the advantages of scale in terms of purchasing inputs, leveraging shared services, and marketing products. The food product of the area will be determined by the state government taking into account existing collections and availability of raw materials. An ODOP product can be a perishable product, a grain-based product, or a food product that is produced on a large scale in the district and allied sectors. An illustrative list of these products includes mango, potato, litchi, tomato, tapioca, kinnu, bhujia, petha, papad, pickle, millet-based products, fisheries, poultry, and meat as well as animal feed, among others.

The central government will give preference to those districts that produce products under the ODOP scheme. However, units that produce other products will also be supported. It will support the common infrastructure, branding, and marketing of ODOP products. The scheme also focuses on transforming waste into products of wealth, small forest products, and aspirational areas.

Support Organizations FPOs/SHGs/Cooperatives

Credit-linked grants will be provided to organizations managed by financial institutions/self-help groups/producer cooperatives at a rate of 35% for capital investment along the value chain.

Seed capital to SHG

Seed capital at Rs. 40,000 will be provided to each member of the self-help group for working capital and the purchase of small tools.

Shared infrastructure development

The central government will also provide support through 35% credit-linked grants for the development of common infrastructure. They include a common processing facility, laboratory, warehouse, cold store, packing center, and incubation through FPOs/self-help groups/cooperatives, state-owned agencies, or private enterprises for use by the small units of the group.

Marketing and Branding Support

The government will also provide marketing and branding support for a small unit and group brand development with a 50% grant at the state or regional level which can benefit a large number of small units in the groupings.

Special focus on capacity building and research

The formalization of the micro-food enterprise Scheme places special emphasis on capacity building and research. Support will be provided to the academic and research institutions of NIFTEM and IIFPT of the Ministry of Trade and Industry along with technical institutions at the country level selected by the countries. This support is for unit training, product development, packaging, and machinery suitable for small units.

All operations of the PM FME Scheme will take place in the MIS including applications from entrepreneurs, processing, approval of various projects by states and the Department of Industry and Commerce, the release of grants and other funds, and project monitoring. Individual entrepreneurs and other stakeholders wishing to benefit from assistance under the scheme may contact the nodal state agencies in their relevant states/UTs regarding the implementation of the scheme and area-level focal points.

Need for PM FME Scheme

The informal food manufacturing sector faces a number of challenges that limit its performance and growth. These challenges are listed below:-

• Lack of access to modern technology and equipment.
• Lack of training.
• Difficulty obtaining institutional credit.
• Lack of basic awareness of product quality control.
• Lack of marketing and branding skills.
• With these major challenges, the unregulated food processing sector contributes much less in terms of value-added and production despite its huge potential

Online Application Procedure for PM FME Scheme – पीएम एफएमई योजना के लिए ऑनलाइन आवेदन प्रक्रिया

• All existing food processing units wishing to seek assistance can apply online to the FME portal.
• District Resource Persons (RPs) who were involved in the field support, will provide manual support for preparing DPR, availing a bank loan, and getting necessary registration and licenses including FSSAI, Udyog Aadhar, and GST Food Standards.
• Support requests for FPOs/self-help groups/cooperatives, shared infrastructure, marketing, and branding can be submitted to the State Nodal Agency (SNA) along with the DPR.
• SNR will evaluate the project for a grant and recommend a bank loan.
• A grant from the government will be deposited in the beneficiary’s account at the lending bank.
• If the beneficiary’s account is still standard 3 years after the last tranche of the loan has been disbursed, and the unit is in operation, then this amount will be adjusted in the beneficiary’s bank account.
• The bank will not charge any interest on the grant amount in the loan.
• The official PME scheme notice can be accessed using the link – https://mofpi.nic.in/fme/.

Offline Application Forms for Groups – PMFME Scheme

State Nodal government agencies will now accept applications for cooperatives, FPOs, SHGs, and Common Infrastructure under the PMFME scheme in physical form. The following documents must be submitted by the beneficiaries and will be recommended by the nodal state authorities to the Ministry of Trade and Industry for credit-related support.

• A signed hard copy of the completed application form (pdf).
• An electronic or Soft copy of the completed application form (Excel).
• Supporting documents for the application.
• Detailed project report in PDF or Word format.

Completed application forms can be submitted either directly to the nodal state agencies or through the nodal contacts of the District listed below

• List of State Nodal Points for Application Submission
• List of District Nodal Points for Application Submission

PM FME Portal Contact or HelpDesk

Ministry of Food Processing Industries

• Address: Panchsheel Bhawan, August Kranti Marg Khelgaon, New Delhi-110049
• Open Time: 09:00 AM – 7:00 PM
• Phone: 011-26406500, 9254997101, 9254997102, 9254997103, 9254997104 & 9254997105
• Email: support-pmfme@mofpi.gov.in

Important Links

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