PMFME Scheme Empowers India’s Micro Food Processing Sector

RR Team

3 weeks ago

New Delhi: The Pradhan Mantri Formalisation of Micro Food Processing Enterprises (PMFME) Scheme, launched in June 2020, continues to strengthen India’s micro food processing sector. The scheme aims to assist micro enterprises, largely operating in the informal sector, by addressing challenges such as lack of credit access, technology upgradation, marketing linkages, and capacity building.

One of the key challenges faced during implementation is generating sufficient complete applications from prospective entrepreneurs and ensuring their sanction by partnering banks. To support this, Model Detailed Project Reports (DPRs) have been prepared in consultation with the National Institute of Food Technology Entrepreneurship and Management (NIFTEMs) and are made available on the scheme portal for easy access.

Capacity Building and Training Initiatives

The scheme emphasizes Entrepreneurship Development Programme (EDP) training, coordinated by State Level Technical Institutes (SLTIs). Certified Master Trainers, trained by NIFTEM-Kundli and NIFTEM-Thanjavur under the Food Industry Capacity and Skill Initiative (FICSI), conduct district-level training. This ensures quality, uniformity, and enhances the chances of project sanction by banks.

All training activities, including modules and beneficiary attendance, are digitally tracked on the online training portal. Participation certificates are issued upon verification, ensuring transparency and accountability.

Incubation Centres and Common Facility Centres

Under the PMFME Scheme, 21 of 76 approved incubation centres are operational. Additionally, Common Facility Centres (CFCs) are supported at 35% of eligible project cost, with a maximum limit of Rs. 3 crore, enabling Farmer Producer Organisations (FPOs), SHGs, cooperatives, and government agencies to establish food processing lines and shared infrastructure.

These centres provide capacity for other units and the public on a hiring basis, fostering collaborative growth and technology transfer in high-demand clusters.

Digital Resources and Continuous Learning

As of 31st October 2025, NIFTEMs have developed 779 One District One Product (ODOP) training modules, 199 presentations, 192 videos, 190 DPRs, and 198 handbooks/course materials to facilitate continuous learning. The training curriculum is updated regularly with input from national institutions and feedback from states to incorporate emerging technologies and market trends.

National-level webinars on food technologies are conducted for micro food processing entrepreneurs to enhance knowledge, product development, and industry competitiveness.

Collaboration and Monitoring

The PMFME Scheme collaborates with technical institutions, agricultural universities, and industry bodies to support technology transfer, product testing, and incubation. Regular review meetings with state governments and participating banks are conducted to improve scheme performance and address implementation challenges.

These initiatives collectively aim to formalize micro food enterprises, expand incubation facilities, enhance entrepreneurship skills, and strengthen India’s micro food processing sector.