Over two lakh micro food processing ventures have benefited from the PMFME scheme, facilitating significant investments and creating numerous job opportunities.
New Delhi, India Jul 11, 2026 ALN: New Delhi, Food Processing Industries Minister Chirag Paswan announced on Thursday that over 2 lakh micro enterprises have received credit-linked subsidies under the PMFME scheme since its launch in 2020. This initiative has enabled the establishment of processing facilities with a combined investment of Rs 20,300 crore. The PMFME scheme is part of the Indian government's broader strategy to boost the food processing sector, which is seen as critical for enhancing agricultural productivity and improving farmers' incomes.
The total subsidy amount provided so far under the Pradhan Mantri Formalisation of Micro Food Processing Enterprises (PMFME) scheme is around Rs 6,000 crore, Paswan added. He highlighted that the scheme has been extended until September this year, and the ministry is considering launching PMFME 2.0 with appropriate changes to attract more investments in this sector. The extension indicates the government's commitment to fostering the growth of micro food processing enterprises, which are crucial for the rural .
Addressing an event, Paswan stated that loans have been sanctioned to more than 2 lakh micro food processing enterprises over the last six years, marking a "historic milestone." When asked about the subsidy provided under this scheme, he reiterated that it stands at approximately Rs 6,000 crore. This funding has played a vital role in supporting small businesses that often lack access to traditional financing methods.
The minister emphasized that the scheme has leveraged project investments exceeding Rs 20,300 crore while generating nearly 11 lakh direct and indirect employment opportunities. The creation of jobs is particularly significant in a country like India, where a large portion of the population relies on agriculture and related sectors for their livelihoods. He noted that nearly 90 percent of beneficiaries are first-generation entrepreneurs, with 44 percent being women entrepreneurs. This statistic highlights the scheme's role in promoting entrepreneurship, particularly among underrepresented groups.
Additionally, over 75,000 PMFME-supported enterprises have formalized their operations through registrations such as Udyam Aadhaar, Udyam Assist, FSSAI, and GST. Formalization is essential for businesses, as it enables them to access various government schemes and financial assistance, thereby fostering growth and sustainability.
Paswan remarked that the achievement of 2 lakh beneficiaries demonstrates that this vision is translating into measurable outcomes. He commended the performance of leading states, including Bihar, Maharashtra, Uttar Pradesh, Tamil Nadu, and Madhya Pradesh. These states have shown significant progress in implementing the PMFME scheme, showcasing the potential for regional growth in the food processing sector.
He also stressed the need to expand this scheme to cover more individuals and discussed the significant business opportunities within the food processing sector. According to Paswan, food processing could address three major challenges: enhancing farmers' income, creating jobs, and reducing wastage of farm produce. The reduction of waste is particularly critical in India, where a substantial portion of agricultural produce is lost due to inadequate processing and storage facilities.
Furthermore, the minister countered the false narrative that all processed food is detrimental to health and urged food businesses not to compromise on quality. This point is significant in the context of growing consumer awareness regarding food safety and quality. Food Processing Secretary A P Das Joshi stated that this scheme is inclusive, with most processing units located in rural India, helping to minimize wastage of farm produce. The focus on rural areas is essential for balanced development and for ensuring that the benefits of growth reach the grassroots level.
Devesh Deval, Joint Secretary in the ministry, highlighted the importance of the PMFME scheme, which provides end-to-end support to micro food processing entrepreneurs, including financial assistance, training, branding, and market linkage. He noted that the scheme is not merely supporting enterprises but is transforming livelihoods, strengthening local value chains, and creating sustainable employment opportunities across the country. This holistic approach is vital for ensuring that micro enterprises can thrive in a competitive market.
The ministry also pointed out that the scheme's seed capital support has been availed by more than 4.18 lakh Self Help Group members, with over 1.76 lakh beneficiaries trained under the scheme, of whom 77 percent are women. This emphasis on training and capacity building is crucial for ensuring that beneficiaries can effectively manage their enterprises and contribute to the .
During the event, Paswan honored the second lakh beneficiary, Inderjeet Singh from Ranchi, Jharkhand, presenting him with the sanction letter and certificate. Recognizing individual beneficiaries serves to inspire others and highlights the tangible benefits of the PMFME scheme.
Under the PMFME, a 35 percent subsidy for individual micro food processing enterprises (maximum Rs 10 lakh) is provided to set up or upgrade their facilities. Additionally, there is a provision of a 35 percent credit-linked subsidy for Farmer Producer Organizations (FPOs), Farmer Producer Companies (FPCs), and Self Help Groups (SHGs) to establish or upgrade common infrastructure (maximum Rs 3 crore). This dual approach of supporting both individual enterprises and collective organizations is designed to strengthen the entire food processing ecosystem.
Seed capital of Rs 40,000 is being allocated per SHG member engaged in food processing for working capital and the purchase of small tools. The expenditure under the scheme is shared in a 60:40 ratio between the Central and State Governments, with variations for North Eastern and Himalayan States, as well as Union Territories. This financial model aims to ensure that the burden of investment is shared, making it more feasible for states to participate actively in the scheme.
In conclusion, the PMFME scheme represents a significant step towards formalizing and enhancing the micro food processing sector in India. With over 2 lakh beneficiaries and substantial investments, the scheme is not only creating jobs but also empowering entrepreneurs, particularly women, and strengthening rural economies. As the government considers further expansions and improvements, the potential for the food processing sector to play a pivotal role in India's development remains promising.
To learn more about the latest developments in Microeconomics, stay updated with our exclusive reports and analyses on AiLensNews.
