Pradhan Mantri Formalisation of Micro Food Processing Enterprises is a schemes by the Ministry of Food Processing Industries, to support individual Micro Enterprises for both existing or new micro food processing enterprises for expansion/upgradation of existing micro food processing enterprises or setting up of new micro food processing enterprises.


1. Enhance the competitiveness of existing individual micro-enterprises in the unorganized segment of the food processing industry and promote formalization of the sector; and

2. Support Farmer Producer Organizations (FPOs), Self Help Groups (SHGs), and Producers Cooperatives along their entire value chain.

Eligible Entities

  • Farmer Producer Organization(FPO)

  • Self Help Groups

  • Co-operatives

  • Existing Micro Food Processing Entrepreneurs

  • New Units, whether for individuals or groups would only be supported for One District One Product (ODOP)

Nature of facility

Working capital & Term Loan


Minimum margin of 10%.

Quantum of Loan:

The project under the PM FME scheme shall be eligible for loan upto 90% of the actual project cost.

Benefits of the scheme:

1) Credit Linked Grant/Subsidy

  • 35% of the eligible project cost with a maximum ceiling of Rs.10 lakh per unit.
  • Credit Guarantee Trust Fund for Micro & Small Enterprises (CGTMSE) for collateral free loan up to Rs 2 crore