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

The Pradhan Mantri Formalisation Of Micro Food Processing Enterprises (PM FME) Scheme, launched on June 29, 2020, Read More... by the Ministry of Food Processing Industries (MoFPI), aims to boost small food businesses and formalize the sector. Read less

Details

Are you a small food business owner looking to grow and formalize your operations? The Pradhan Mantri Formalisation Of Micro Food Processing Enterprises (PM FME) Scheme could be your answer.

Launched by the Ministry of Food Processing Industries (MoFPI) on June 29, 2020, this Centrally Sponsored Scheme is designed to help micro food processing units across India. It aims to tackle the challenges faced by individual entrepreneurs and leverage the power of Farmer Producer Organizations (FPOs), Self Help Groups (SHGs), and cooperatives to upgrade and formalize the food processing sector.

What Is This Scheme?

The PM FME Scheme focuses on two main goals: first, making existing micro food processing enterprises more competitive and bringing them into the formal economy; and second, supporting FPOs, SHGs, and producer cooperatives throughout their value chain.

Who Can Benefit From This Scheme?

This scheme is for existing micro food processing entrepreneurs, FPOs, SHGs, and cooperatives. It aims to provide them with better access to credit, help them integrate with larger supply chains, and offer support for professional and technical services.

Why This Scheme Is Important

The scheme is crucial for the growth of India's food processing sector. By providing financial assistance, training, and marketing support, it helps small businesses to scale up, create more jobs, and contribute more effectively to the economy. It also focuses on strengthening institutions and research in the sector, ensuring sustainable development.

Objective

The Pradhan Mantri Formalisation Of Micro Food Processing Enterprises (PM FME) Scheme, launched on June 29, 2020, by the Ministry of Food Processing Industries (MoFPI), aims to boost small food businesses and formalize the sector.

Benefits

A financial assistance of Rs.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 death of the child.

Sources and references

Scheme Guidelines

Eligibility Criteria

The Pradhan Mantri Formalisation Of Micro Food Processing Enterprises (PM FME) Scheme is open to the following:

Farmer Producer Organizations (FPOs)
Self-Help Groups (SHGs)
Cooperatives
Existing Micro Food Processing Entrepreneurs
New units, individuals, or groups will be supported only if they focus on a 'One District One Product' (ODOP) identified for their district.

For Individual Micro-Enterprises:

Must be an existing micro food processing unit in operation.
Should be identified for ODOP products or verified by a Resource Person. For units using electricity, an electricity bill is proof; for others, existing operations, inventory, machines, and sales will be considered.
The enterprise must be unincorporated and employ fewer than 10 workers.
Preferably involved in an ODOP product, though others can also be considered.
The applicant must own the enterprise.
The enterprise can be a proprietorship or a partnership firm.
Applicants must be over 18 years old and have at least an VIII standard pass educational qualification.
Only one person per family (self, spouse, and children) can receive financial assistance.
Willingness to formalize, contribute 10% of the project cost, and secure a bank loan is essential.
The cost of land cannot be part of the project cost. Rent for a workshed for up to 3 years can be included.

For Cooperatives/FPOs:

Should preferably be involved in processing ODOP products.
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 with the product.
The cooperative/FPO must have sufficient internal resources or state government approval 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 buying small tools.
SHG Federations need to collect basic details of members before disbursing seed capital.

For Credit Linked Grant for Capital Investment for SHGs:

SHGs must have sufficient own funds for 10% project cost and 20% margin money for working capital, or this amount should be sanctioned as a grant from the State Government.
SHG members should have at least 3 years of experience in processing the ODOP product.

For Branding and Marketing Support:

Proposals must relate to ODOP products.
Minimum turnover of ₹5 crore is required for product eligibility.
The final product must be ready for retail sale.
Applicants should be FPOs/SHGs/cooperatives/regional SPVs that bring many producers together.
Products and producers must be scalable.
The promoting entity must demonstrate management and entrepreneurship capabilities.

For Support to National Institutions (Capacity Building & Research):

National Institute for Food Technology Entrepreneurship and Management (NIFTEM) and Indian Institute of Food Processing Technology (IIFPT) are eligible.

For Support to State-Level Technical Institutions (Capacity Building & Research):

Existing state-level institutions involved in food processing technology are eligible. These can be colleges/institutes under State Agriculture Universities, State-owned research institutes, or institutes under CSIR/Government of India focusing on food processing. They need to have faculty, laboratories, research capabilities, and willingness to appoint a nodal officer and team for the scheme.

How To Apply

The application process generally involves the following steps:

Identify Your Project: Determine if your enterprise, group, or cooperative fits the 'One District One Product' (ODOP) focus or meets other eligibility criteria.
Prepare Your Proposal: Develop a detailed project report (DPR) outlining your business plan, required investment, and expected outcomes. Assistance for DPR preparation may be available for FPOs/SHGs/Cooperatives (up to ₹50,000 per case on successful loan sanction).
Approach a Bank: Connect with a bank that is participating in the scheme. You can find details of participating banks through the Ministry of Food Processing Industries (MoFPI) or your state nodal agency.
Submit Application: Fill out the bank's loan application form and submit it along with all the necessary documents as per the checklist for your category (individual, FPO, SHG, etc.).
Loan Sanction & Subsidy: If your loan is approved, the credit-linked subsidy will be disbursed by the Central and State governments directly to your bank account.
Loan Repayment: You will need to repay your loan as per the bank's terms. After 3 years of successful repayment and operational status, the subsidy amount will be credited to your account.

For specific details on application forms and the process, it's best to contact your nearest bank branch or the State Nodal Agency for the PM FME scheme.

Documents Required

The documents required vary based on the type of applicant (individual, FPO, SHG, cooperative). Here's a general checklist:

For New Individual Enterprises/Firms:

PAN Card of the promoter(s).
Aadhaar Card copy and photograph of promoter(s)/guarantor(s).
Address Proof (Utility bill not older than two months, Property/Municipal tax receipt, or Ration Card).
Bank Statement/Passbook copy for the last 6 months.
Optional: Educational qualification certificates, details of active loans.

For Existing Individual Enterprises/Firms (with turnover > ₹1 Cr):

PAN Card of concern/promoters/guarantors.
Aadhaar Card copy and photograph of promoter(s)/guarantor(s).
Address Proof (Utility bill not older than two months, or Property/Municipal tax receipt).
Udyam Registration Certificate/IE Code/Licenses (Trade License, Shop & Establishment, Panchayat/Corporation/Municipality License).
Business Partnership Agreement (if applicable).
Bank Statement/Passbook copy of the firm for the last 6 months.
Audited Balance Sheet with annexures for up to 3 years with ITR.
Copy of relevant industry licenses (e.g., FSSAI, Pollution Clearance).
GSTIN Registration Certificate.
GST returns for the last financial years.
List of existing machinery and equipment.
Photos of the existing unit.
Optional: Loan statements, sanction letters, insurance policy copies, stock statements, sales-purchase records.

For Existing Individual Enterprises/Firms (with turnover < ₹1 Cr):

PAN Card of the concern.
Aadhaar Card copy and photograph of promoter(s)/guarantor(s).
Address Proof (Utility bill not older than two months, Property/Municipal tax receipt, or Ration Card).
Udyam Registration Certificate/IE Code/Licenses (Trade License, Shop & Establishment, Panchayat/Corporation/Municipality License).
Business Partnership Agreement (if applicable).
Bank Statement/Passbook copy of the firm for the last 6 months.
Optional: Audited/Self-affixed balance sheet for up to 3 years with ITR, copy of relevant industry licenses, GSTIN registration and returns (if applicable), loan statements, stock statements, sales-purchase records.

For Farmer Producer Companies (Existing Enterprises):

PAN Card of company/Chairman/Chief Executive.
Aadhaar Card copy and photograph of Chairman/Chief Executive.
Address Proof (Utility bill not older than two months, or Property/Municipal tax receipt).
Udyam Registration Certificate/IE Code/Licenses (Trade License, Shop & Establishment, Panchayat/Corporation/Municipality License).
Certificate of Registration.
Memorandum and Articles of Association.
List of Directors and brief bio-data.
Share holding pattern details.
Board resolution for availing loan.
Bank Statement/Passbook copy of the company for the last 6 months.
Audited Balance Sheet with annexures for up to 3 years with ITR.
Copy of relevant industry licenses (if available).
GSTIN Registration Certificate.
GST returns for the last 3 years (for existing unit).
List of existing machinery and equipment.
Photos of the existing unit.
DPR.
Optional: Loan statements, sanction letters, insurance policy copies, stock statements, sales-purchase records, AGM/Board meeting minutes, recent grants, annual report, agreements with buyers.

For Co-operative Societies (Existing Enterprises):

PAN Card of Society/Chairman/President/Chief Executive.
Aadhaar Card copy and photograph of Chairman/President/Chief Executive.
Address Proof (Utility bill not older than two months, or Property/Municipal tax receipt).
Udyam Registration Certificate/IE Code/Licenses (Trade License, Shop & Establishment, Panchayat/Corporation/Municipality License).
Certificate of Co-operative Society registration.
Copy of Society Bye laws.
List of Board Executive Members and bio-data.
Share holding pattern details.
Board resolution for availing loan.
Bank Statement/Passbook copy of the society for the last 6 months.
Estimates and Quotations of machineries and equipment.
Audited Balance Sheet with annexures for up to 3 years with ITR (for existing unit).
Copy of relevant industry licenses.
GSTIN Registration Certificate.
GST returns for the last one year.
List of existing machinery and equipment.
Photos of the existing unit.
DPR.
Optional: Loan statements, sanction letters, insurance policy copies, stock statements, sales-purchase records, AGM/Board meeting minutes, recent grants, annual report, agreements with buyers.

For Self-Help Groups (SHGs):

Aadhaar Card copy of all members.
List of all members with photos, contact numbers, and addresses.
Address Proof of the Unit (Utility bill not older than two months, or Property/Municipal tax receipt).
Resolution copy signed by all members to avail loans.
Estimates and Quotations for machineries and equipment.
Details of Group Savings, loans, etc.
DPR.
Optional: Loan statements, sanction letters, meeting minutes, agreements with buyers, copies of government grants received, Bank Statement/Passbook of the SHG for the last 6 months.

Official Sources

For the most accurate and up-to-date list of required documents, please refer to the official scheme guidelines on the Ministry of Food Processing Industries (MoFPI) website or contact your state nodal agency.

FAQ’s

What exactly is the PM FME Scheme?

The Pradhan Mantri Formalisation Of Micro Food Processing Enterprises (PM FME) Scheme is a nationwide initiative by the Ministry of Food Processing Industries (MoFPI). It has a budget of Rs. 10,000 crores and aims to support 2,00,000 micro enterprises over five years, from 2020-21 to 2024-25.

What qualifies as a 'Micro Enterprise' under this scheme?

A micro enterprise is defined as a business where the investment in plant and machinery or equipment does not exceed ₹1 crore, and the annual turnover is no more than ₹5 crore.

Is there a limit to the credit subsidy or grant I can receive?

Yes, for individual beneficiaries, the credit subsidy is 35% of the project cost, capped at ₹10 lakh. For SHG members involved in food processing, there's a seed capital of ₹40,000 per member for working capital and purchasing small tools.

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

Yes, applicants are expected to contribute 10% of the total project cost.

How will the subsidy amount be credited to my account?

Once your loan is approved, the subsidy will be transferred to your bank account by the Central and State governments. You'll need to pay your EMIs on time for three years, and the unit must be operational. After this period, if your loan is in good standing, the subsidy amount will be credited to your account.

Are there any special benefits for Scheduled Castes (SC) or Scheduled Tribes (ST)?

Yes, there is a specific allocation of funds for Scheduled Caste (SC) and Scheduled Tribe (ST) applicants, as well as for the North-Eastern region.

If my son/daughter or spouse also works in ODOP processing, can they apply separately?

No, only one person per family is eligible for financial assistance. The term 'family' includes the applicant, their spouse, and their children.

Can I use benefits from other government schemes along with the PMFME Scheme?

Absolutely! You can avail of other relevant government schemes in conjunction with the PMFME Scheme.

How will branding and marketing support be provided?

Marketing and branding support will be offered to FPOs, SHGs, and Cooperatives focusing on ODOP products. This includes funding for marketing training, developing common brands and packaging, creating tie-ups with retail chains, and ensuring quality control.

Is there financial help available to prepare my Detailed Project Report (DPR)?

Yes, FPOs, SHGs, and Cooperatives can receive assistance of up to ₹50,000 per case for DPR preparation, provided their loan application is successfully sanctioned.

What is the duration of the PM FME Scheme?

The scheme is planned to run for a period of five years, from the fiscal year 2020-21 to 2024-25.

Do I need to pay any fees to apply or receive support?

No, as this is a Centrally Sponsored Scheme, you do not need to pay any application or processing fees for filling out the application or for any handholding support.

Is there an age requirement to apply?

Yes, applicants must be at least 18 years old.

What educational qualification is needed to apply?

You need to have completed at least VIII standard (8th grade).

Are there any other conditions I need to meet to be eligible?

Yes, you must have ownership rights in the enterprise, and the enterprise can be either a sole proprietorship or a partnership firm.

What happens if my loan application is rejected by a bank?

If a bank rejects your application, you are welcome to reapply with a different bank.

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

No, under this scheme, an eligible enterprise must be unincorporated and employ fewer than 10 workers to qualify for benefits.