RMEWF-Financial Assistance To 100% Disabled Child Of Ex-Servicemen 2026

The PMFME scheme, launched on June 29, 2020, by the Ministry of Food Processing Industries (MoFPI), aims Read More... to help small food businesses grow and become formal by providing financial support and better market access. Read less

Details

Did you know that the Indian food processing sector is booming? Many small businesses are working hard, but they often face challenges. To help these micro food processing enterprises, the government introduced the Pradhan Mantri Formalisation of Micro Food Processing Enterprises (PMFME) scheme.

What Is The PMFME Scheme?

Launched on June 29, 2020, the PMFME scheme is a big government initiative designed to support individual micro food processing businesses, Farmer Producer Organizations (FPOs), Self Help Groups (SHGs), and Cooperatives. Its main goal is to make these businesses more competitive, formal, and well-connected in the food industry's supply chain.

Who Can Benefit From This Scheme?

This scheme is primarily for existing or new micro food processing entrepreneurs, farmer producer organisations, self-help groups, and cooperatives. It focuses on businesses that can enhance the competitiveness of unorganised food processing units and support them through value chain development.

Why Is This Scheme Important?

The PMFME scheme is crucial because it aims to bring a significant number of micro food processing units into the formal sector. It helps them gain better access to credit, improve their branding and marketing strategies, and connect with organised supply chains. By doing this, it not only boosts individual businesses but also strengthens the overall food processing industry in India.

Objective

The PMFME scheme, launched on June 29, 2020, by the Ministry of Food Processing Industries (MoFPI), aims to help small food businesses grow and become formal by providing financial support and better market access.

Benefits

Financial assistance of ₹3000/- per month (paid annually) per child is provided to eligible ex-servicemen or their widows.

The financial assistance is non-transferable and will cease automatically upon the death of the child.

Sources and references

Scheme Guidelines

Who Can Apply? Eligibility Criteria

To benefit from the PMFME scheme, here's who can apply:

Existing micro food processing units that are operational.
Farmer Producer Organizations (FPOs).
Self-Help Groups (SHGs).
Cooperatives.
New individual or group units, provided they focus on the 'One District One Product' (ODOP) for their district.

For Individual Micro-Enterprises:

Must be an existing micro food processing unit with less than 10 workers and an unincorporated enterprise.
Should preferably be involved in the ODOP product of the district.
Applicant must be above 18 years of age and have at least an VIII standard pass.
Only one person per family (self, spouse, children) can receive financial assistance.
Must be willing to formalize, contribute 10% of the project cost, and obtain a bank loan.
The cost of land cannot be included in the project cost; however, lease or rental of a workshed for up to 3 years can be included.

For Cooperatives/FPOs:

Should preferably be involved in processing the ODOP product.
Must have a minimum turnover of ₹1 crore.
The proposed project cost should not exceed the current turnover.
Members should have at least 3 years of experience in the relevant product.
Must have sufficient internal resources or state government sanction to cover 10% of the project cost and margin money for working capital.

For Seed Capital for SHGs:

Only SHG members currently engaged in food processing are eligible.
Members must commit to using the funds for working capital and purchasing small tools.

For Credit-Linked Grant for Capital Investment for SHGs:

SHGs need to have sufficient own funds for 10% of the project cost and 20% margin money for working capital, or a grant sanction from the state government.
SHG members should have a minimum of 3 years of experience in processing the ODOP product.

For Branding and Marketing Support:

Proposals must relate to ODOP.
Minimum turnover of the product should be ₹5 crore.
The final product must be for retail sale in a consumer pack.
Applicant should be an FPO/SHG/cooperative or a regional/state-level SPV to bring producers together.
Products and producers must be scalable.
The promoting entity must demonstrate management and entrepreneurship capability.

For National/State-Level Institutions:

National institutes like NIFTEM and IIFPT are eligible.
State-level technical institutions involved in food processing technology (colleges, research institutes) with necessary infrastructure and faculty are eligible, provided they are recommended by the State Government.

How To Apply for PMFME Scheme

The application process for the PMFME scheme generally involves approaching financial institutions:

Identify Your Project: Determine the type of food processing activity you wish to undertake or upgrade, preferably related to your district's ODOP.
Prepare a Project Report (DPR): Develop a Detailed Project Report outlining your business plan, costs, and expected outcomes. Assistance for DPR preparation may be available for FPOs/SHGs/Cooperatives.
Approach Financial Institutions: Approach eligible banks or financial institutions that are partners under the PMFME scheme.
Submit Application: Fill out the loan application form and submit it along with all the required documents as listed by the bank.
Bank Appraisal: The bank will appraise your project, assess your eligibility, and process your loan application.
Subsidy Disbursement: Upon sanction of the loan, the credit-linked subsidy will be released by the government to your account after a specified period, typically after the loan is operational and maintained for three years.

Note: The exact process and documentation may vary slightly depending on the bank and the specific component of the scheme you are applying for. It is advisable to contact your nearest bank branch or the implementing agencies for detailed guidance.

Documents You Might Need to Apply

The exact documents required can vary slightly based on the type of applicant (individual, FPO, SHG, etc.) and the bank. However, here's a general checklist:

For New Individual Enterprises:

PAN Card of the promoter.
Aadhaar Card copy and photograph of the promoter.
Address Proof (recent utility bill, property tax receipt, or Ration Card).
Bank Statement/Passbook for the last 6 months.
Proof of academic qualification (VIII standard pass).

For Existing Individual Enterprises (with < ₹1 Cr Turnover):

PAN Card of the enterprise.
Aadhaar Card copy and photograph of the promoter.
Address Proof (recent utility bill, property tax receipt).
Udhayam Registration Certificate/IE code/Licenses (Trade License, Shop & Establishment Registration, etc.).
Partnership Agreement (if applicable).
Bank Statement/Passbook for the firm (last 6 months).
Self-attested balance sheet (up to 3 years) with ITR, if applicable.
Copy of industry-specific licenses (e.g., FSSAI).
GSTIN Registration Certificate (if applicable).
GST returns (last 1 year, if applicable).

For Existing Individual Enterprises (with > ₹1 Cr Turnover):

PAN Card of the enterprise/promoters.
Aadhaar Card copy and photograph of promoters/guarantors.
Address Proof.
Udhayam Registration Certificate/IE code/Licenses.
Business Partnership Agreement (if applicable).
Bank Statement/Passbook of the firm (last 6 months).
Audited balance sheet (max 3 years) with ITR.
Copy of industry-specific licenses (e.g., FSSAI, Pollution Clearance).
GSTIN Registration Certificate.
GST returns of last financial years.
List of existing machinery and equipment.
Photographs of the existing unit.

For Farmer Producer Companies (FPCs) / Cooperative Societies:

PAN Card of the company/society/Chairman/Chief Executive.
Aadhaar Card copy and photograph of Chairman/Chief Executive.
Address Proof of the company/society.
Udhayam Registration Certificate/IE code/Licenses.
Certificate of Registration/Bye-laws.
List of Directors/Board Executive Members with bio-data.
Details of shareholding pattern.
Board resolution for availing loan.
Bank Statement/Passbook of the company/society (last 6 months).
Audited balance sheet (max 3 years) with ITR (for existing units).
Copy of industry-specific licenses (e.g., FSSAI).
GSTIN Registration Certificate.
GST returns (last 1-3 years, as applicable).
List of existing machinery and equipment.
Photographs of the existing unit.
Detailed Project Report (DPR).

For Self-Help Groups (SHGs):

Aadhaar Card of all members.
List of all members with photos, contact numbers, and addresses.
Address Proof of the Unit (recent utility bill, property tax receipt).
Resolution copy signed by all members to avail loans.
Estimates and quotations for machinery and equipment.
Details of Group Savings, loan history, etc.
Detailed Project Report (DPR).
Bank Statement/Passbook of the SHG (last 6 months).

Always check with the specific bank or financial institution for the most accurate and up-to-date list of required documents.

FAQ’s

What is the PMFME Scheme all about?

The Pradhan Mantri Formalisation of Micro Food Processing Enterprises (PMFME) scheme is a nationwide initiative backed by the Central Government. It has an outlay of Rs. 10,000 crores and aims to support 2,00,000 micro food processing enterprises over five years (2020-21 to 2024-25) by providing financial assistance and helping them formalize.

What does 'Micro Enterprise' mean in this scheme?

A micro enterprise is defined as a business where the investment in plant and machinery or equipment is not more than ₹1 crore, and its annual turnover does not exceed ₹5 crore.

Are there financial limits on the subsidy or grant provided?

Yes, for individual beneficiaries, a credit-linked subsidy of 35% of the project cost is available, with a maximum ceiling of ₹10 lakh. For SHG members involved in food processing, seed capital of ₹40,000 per member is provided for working capital and small tool purchases.

Do I need to invest any of my own money for this scheme?

Yes, you will need to contribute at least 10% of the total project cost. The remaining amount will be provided as a loan from the bank.

How and when will the subsidy amount be credited?

Once your loan is approved, the Central and State governments will transfer the subsidy amount to your account. You need to make timely EMI payments for three years and ensure your unit is operational. After three years, if your loan account is in standard status, the subsidy amount will be credited to your bank account.

Are there any special provisions for Scheduled Caste (SC) or Scheduled Tribe (ST) applicants?

Yes, the scheme has specific allocations set aside for Scheduled Caste (SC) and Scheduled Tribe (ST) applicants, as well as for the North-Eastern region.

Can my family members also apply for this scheme if they are involved in similar work?

No, only one member per family is eligible for financial assistance under this scheme. For this purpose, 'family' includes the applicant, their spouse, and their children.

Can I get benefits from other government schemes alongside PMFME?

Absolutely! You can avail of benefits from other government schemes along with the PMFME scheme, which can provide you with additional support.

How does the scheme help with branding and marketing?

The scheme offers marketing and branding support, especially for groups like FPOs, SHGs, and Cooperatives, focusing on the ODOP approach. This includes funding for marketing training, developing common brands and packaging, creating tie-ups with retailers, and ensuring product quality meets standards.

Is there financial help available for creating a Detailed Project Report (DPR)?

Yes, if you are an FPO, SHG, or Cooperative, an assistance of ₹50,000 per case can be provided for preparing a DPR, contingent upon successful sanction of your loan application.

What is the total duration of the PMFME scheme?

The scheme is planned to run for a period of five years, starting from the financial year 2020-21 and concluding in 2024-25.

Do I have to pay any fees to apply for this scheme or receive help?

No, this is a centrally sponsored scheme, and you do not need to pay any fees for submitting your application or for any handholding support provided under the scheme.

What is the minimum age requirement to apply?

Yes, you must be at least 18 years of age to be eligible to apply for the benefits of this scheme.

Is there any educational qualification needed to apply?

Yes, applicants are required to have a minimum educational qualification of VIII standard pass.

Are there other requirements besides age and education?

Yes, you should have ownership rights over the enterprise you are applying for. The enterprise can be structured as a sole proprietorship or a partnership firm.

What if my application gets rejected by a bank? Can I try again?

Certainly. If your application is rejected by one bank, you are welcome to reapply with a different bank that is also participating in the scheme.

My enterprise employs more than 10 people. Can I still apply?

No, based on the scheme's eligibility, your enterprise must be unincorporated and employ fewer than 10 workers to qualify for the benefits.