PMFME Scheme Hits Milestone: 62,282 Loans Sanctioned for Micro Food Processing Enterprises
The objective of the scheme is to facilitate the establishment of 200,000 micro food processing enterprises by providing credit-linked subsidies over the five-year span from 2020-21 to 2024-25, with a budget allocation of Rs 10,000 crore.
The PM Formalisation of Micro Food Processing Enterprises Scheme (PMFME) has achieved a significant milestone by sanctioning 62,282 loans as of December 8, according to the Minister of State for Food Processing Industries, Prahlad Singh Patel. In a written reply in the Rajya Sabha, Patel shared data on the credit-linked subsidy component of the scheme, revealing that 61,796 loans were sanctioned for individual beneficiaries, 34 for Farmers Producers Organizations (FPOs), 433 for Self Help Groups (SHGs), and 19 for Producer Co-operative Societies.
As of December 10, the scheme has sanctioned 63,791 loans out of over 2 lakh applications received. Out of the sanctioned loans, 46,386 have been disbursed, as indicated by the data available on the scheme’s portal.
The overarching objective of the PMFME scheme is to support the establishment of 2 lakh micro food processing enterprises through credit-linked subsidies during the five-year period spanning 2020-21 to 2024-25, with an allocated budget of Rs 10,000 crore.
The distribution of sanctioned loans by state reflects a noteworthy presence in Maharashtra, with 10,806 loans, followed by Bihar with 9,057, Tamil Nadu with 8,742, Uttar Pradesh with 6,032, and Telangana with 5,136. In contrast, some states or union territories received minimal sanctions, such as Chandigarh (5), Dadra & Nagar Haveli and Daman & Diu (5), Mizoram (15), and Andaman and Nicobar Islands (16).
Praising the scheme's approach, Patel emphasized, “To promote local products in the food processing sector, the PMFME scheme primarily adopts the One District One Product (ODOP) approach, reaping the benefits of scale in procurement, availing common services, and marketing of products. It provides the framework for value chain development and alignment of support infrastructure.”
He further highlighted the branding and marketing component of the scheme, wherein FPOs/SHGs/Cooperatives or SPVs of ODOP-based micro food processing enterprises receive support for market study, product standardization, packaging material, quality control, food safety adherence, warehousing and storage rentals, as well as marketing and promotion.
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