What this scheme offers
PMFME targets India's vast network of unorganised micro food processing units — spice makers, bakeries, pickle producers, millet processors and similar small food businesses — that struggle with formal credit, modern machinery, food safety certification and organised markets. Individual units get a 35% credit-linked capital subsidy, capped at ₹10 lakh, released to the bank after loan sanction (not paid upfront). Self-Help Groups engaged in food processing receive an additional ₹40,000 per member as seed capital for working capital and small tools. The scheme follows a One District One Product (ODOP) approach — organising support around locally significant food products across 726 districts — so entrepreneurs benefit from shared infrastructure, common branding, and collective market access rather than working in isolation. Collateral-free credit is also accessible through CGTMSE (up to ₹5 crore) or Mudra's CGFMU guarantee, depending on the loan structure.
Who is eligible
- Individual entrepreneurs, proprietorship or partnership firms, Farmer Producer Organisations (FPOs), NGOs, cooperatives, Self-Help Groups, and Private Limited companies operating or proposing to establish a micro food processing unit.
- The scheme primarily supports upgrading existing micro units; provisions for entirely new units can vary, so check current guidelines.
- Project should ideally align with your district's identified ODOP product for smoother approval and shared infrastructure access.
Documents required
- ID proof (Aadhaar, Voter ID, Passport, or Driving Licence)
- Address proof
- Detailed Project Report (DPR)
- Two passport-size photographs
- Business registration documents (Udyam registration, partnership deed, or society/cooperative registration, as applicable)
How to apply
- Check your district's ODOP (One District One Product) focus at pmfme.mofpi.gov.in to align your project where possible.
- Prepare a Detailed Project Report for your proposed or existing food processing unit.
- Register and apply online through the official PMFME portal, uploading your project report and supporting documents.
- Your application is reviewed at the district/state level (State Nodal Agency), and forwarded to a bank for loan appraisal.
- Once the bank sanctions and disburses your loan, the 35% subsidy (up to ₹10 lakh) is claimed by the bank and adjusted against your loan.
- The scheme also connects approved beneficiaries to training, branding and marketing support through State Nodal Agencies.