PM Formalisation of Micro Food Processing Enterprises PMFME
A 35% capital subsidy, up to ₹10 lakh, on bank loans for setting up or upgrading micro food processing units, plus seed capital for SHG members and support for shared facilities and branding.
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- Cost to apply
- Free
- Status
- Open
- Run by
- Ministry of Food Processing Industries, centrally sponsored with state nodal agencies
What you get
- Credit-linked capital subsidy of 35% of eligible project cost, up to ₹10 lakh per unit, for individual micro food processing units, new or existing
- Eligible cost covers plant, machinery and technical civil work (civil work capped at 30% of eligible cost), not land or rented sheds
- 35% subsidy up to ₹3 crore for FPOs, SHGs, cooperatives and government agencies setting up common infrastructure
- Seed capital up to ₹40,000 per SHG member in food processing, up to ₹4 lakh per SHG
- Grant up to 50% for branding and marketing by groups or an SPV
- Free 3 day training for applicants recommended by the District Level Committee
- A unit can take this loan even if it has used other subsidy-linked loan schemes
Who can apply
- Open to businesses in food processing.
- Nano and micro enterprises.
- The most on offer is ₹10 lakh.
- Open to individuals, proprietorships, partnerships, FPOs, NGOs, cooperatives, SHGs and private limited companies with or planning a micro food processing unit
- Own contribution at least 10% of project cost, the rest as a bank loan
- No subsidy on working capital
- The scheme follows a One District One Product approach, with priority for the district's chosen product, though other products are allowed for individual units
How to apply
- Get help from the District Resource Person to prepare the project report
- Apply on the PMFME online portal
- The District Level Committee recommends the application to a bank
- The bank sanctions the loan and the subsidy is credited after the unit is set up
In person, contact the District Resource Person for your district
In Kerala, District Resource Persons appointed under the scheme help applicants in every Kerala district. MoFPI publishes their list. The Kerala state nodal agency was not confirmed in this check.
Documents to keep ready
- Project report
- Aadhaar
- PAN
- Bank details
Worth knowing
Launched June 2020 with ₹10,000 crore for FY 2020-25, extended to FY 2025-26. We have not seen a further extension, but MoFPI's scheme page was updated on 3 November 2026 and the resource person list on 19 October 2026. 1,72,707 loans sanctioned since launch.
Where we found this
An independent guide by The Company of Four, not a government website. Schemes change often, so check every detail on the official website before you apply. Links marked ↗ open external websites that we do not run, and we are not responsible for their content. Seen something out of date? Tell us and we will look into it.