Blog

Mumbai: The food processing sector in India is seeing steady traction among micro enterprises, with over 1.44 lakh units approved for support under the PM Formalisation of Micro Food Processing Enterprises (PMFME) scheme as of 30 June 2025. The scheme, administered by the Ministry of Food Processing Industries, is centrally sponsored and demand-driven — allowing eligible applicants across states to seek financial, technical and business support without regional restrictions.

The PMFME scheme offers a credit-linked capital subsidy of 35% of the eligible project cost, capped at ₹10 lakh per unit. This support is targeted at individual micro enterprises seeking to upgrade or set up food processing operations. The scheme is part of a broader effort to accelerate micro, small and medium enterprises (MSME) growth in the sector, alongside the Pradhan Mantri Kisan SAMPADA Yojana (PMKSY) and the Production Linked Incentive Scheme for Food Processing Industry (PLISFPI), both of which also include MSME participation.

Training and capacity building form a significant component of the PMFME programme. As of the latest update, over 1.16 lakh beneficiaries have received skilling support under the scheme. This includes entrepreneurship development, product-specific training, and support for district-level resource persons and trainers. The aim is to equip micro operators with the skills required to meet industry standards and improve operational efficiency.

The scheme’s demand-led structure has enabled wide geographic coverage. In Bihar, for instance, 25,349 proposals have been approved under PMFME, in addition to 13 projects under PMKSY and seven under PLISFPI. The figures reflect the scheme’s reach across both high-growth and underserved regions, with approvals based on applicant readiness rather than location.

The government’s approach to food processing sector development appears to prioritise decentralised growth, with MSMEs positioned as key drivers of employment and value addition. By offering targeted incentives and skilling support, the PMFME scheme seeks to formalise and scale micro operations that have traditionally operated outside the organised sector.

(Write to us at editorial@bombaychamber.com)