PM FME Scheme | pmfme.mofpi.gov.in | pm fme scheme details | pm fme scheme how to apply | pm fme scheme eligibility | pm fme scheme apply online
The Indian food processing industry has the widest variety of food products and the largest production base. The unorganized food processing sector in India has over 25,00,000 food processing units, of which 66% are located in rural areas and over 80% are owned by family-based businesses that provide a source of income to rural communities.
However, these unorganized processing units face significant challenges such as a lack of institutional finance, access to modern equipment and technology, and branding and marketing expertise.
For this purpose, the state and central government have come together to formally launch the Pradhan Mantri Yojana for Micro Food Processing Enterprises (PM FME Scheme 2023). This scheme will be initiated under the Ministry of Food Processing Industries. Through this scheme, various types of financial incentives will be provided to farmer-producer organizations, self-help groups, and producer cooperatives along their value chains.
In this article, we will share all the important details about this scheme like its registration, login, benefits, features, objectives, eligibility criteria, required documents, selection process, etc. So if you want to take advantage of the PM FME scheme then read this article till the end.
PM FME Scheme
The Prime Minister, Shri Narendra Modi formally launched the Prime Minister of Micro Food Processing Enterprises (PMFME) scheme. This scheme is launched under the ‘Atmanirbhar Bharat Abhiyan’ and ‘Vocal for Local’ campaigns to provide technical, financial, and business support to Micro Food Processing units in the country.
The total funds allocated for this scheme are worth Rs. 10,000 crores (US$1.3 billion) and will be delivered from 2020 to 2025. The government intends to provide direct financial and technical assistance to around 200,000 micro-food processing units under this scheme.
The Central Government continues to bear 100% of all outlays in the first year (2020-21), whether made by the Center or the States. and the same outlay will be adjusted in the proportion mentioned below to distribute to the States equally over the next four years.
|Name Of The Scheme||PM FME Scheme 2023|
|Launched By||Government Of India|
|Beneficiary||Citizens Of India|
The objective of the PM FME Scheme
The scheme provides objectives:
- Credit access to existing micro food processing businesses, farmer producer organizations (FPOs), cooperatives, and self-help groups (SHGs) for technology upgradation.
- Support to convert 200,000 existing micro food processing units into organized units by strengthening their marketing and branding and integrating the supply chain with formal units.
- Increased access to shared services such as storage, incubation facilities, and packaging.
- Professional and technical support for food processing entrepreneurs.
- Appropriate training and research for individual or group-owned food processing enterprises.
Benefits of the PM FME Scheme
- This scheme will formalize micro units by means of GST, Udyog Aadhaar, and FSSAI registration.
- Farmer producer organizations, self-help groups, and producer cooperatives are covered under this scheme.
- Financial assistance will also be provided to the individual units through this scheme for upgrading their food processing facilities.
- Other than that quality improvement, setting up common and infrastructural facilities, and skill development will be provided through training and Technical knowledge.
- This scheme also provides branding and marketing support.
One District-One Product (ODOP) Approach
The scheme will adopt the approach of One District One Product (ODOP) to derive benefits of scale in terms of procurement of inputs, availing common services, and marketing of products. The plan will provide the framework for ODOP value chain development and alignment of support infrastructure. There can be more than one cluster of ODOP products in a district. A State may have a cluster of ODOP products consisting of more than one contiguous district.
States will identify a food product for a district keeping in view the focus of the scheme on perishable food items. The baseline study will be conducted by the state government. The ODOP product can be a perishable agricultural product, a grain-based product, or a food product produced widely in the district and its allied areas.
Components of the PM FME Scheme
- Support to individuals and groups of micro-enterprises
- Branding and marketing support
- Support for strengthening the institution
- Setting a progress project management framework
Support To Individual Micro Enterprise
The government is going to provide credit-linked capital subsidies to individual micro food processing units at the rate of 35% of the eligible product cost under the PM FME scheme. This credit-linked capital subsidy will be provided with a maximum limit of Rs 10 lakh per unit.
The beneficiary is required to contribute at least 10% of the project cost, with the balance as a loan from the bank. Technical knowledge, skill training, and handholding support services will be provided through this scheme so as to build the capacity of micro-food entrepreneurs.
Eligibility Criteria for Individual Micro Enterprise
- The enterprise should be engaged in food processing activities.
- The micro-enterprise must be in operation.
- Only one person from a family can take advantage of this scheme.
- The age of the applicant should be 18 years or more.
- Applicant must be at least 8th pass.
- Only Proprietorship or Partnership firms can take advantage of this scheme.
- The applicant should have ownership rights of the enterprise.
- Products identified in a district should include enterprises in one product of the district. Other possible units may also be considered.
- The enterprise should be incorporated and at least 10 workers should be employed in the enterprise.
- The cost of land should not be included in the project cost.
- With a long lease or rental worksheet, the cost of the ready-build can be included in the project cost.
- The lease rental of the workshed which is included in the project cost should be for a maximum period of 3 years.
- The entrepreneur should be willing to contribute 10% of the project cost and obtain a bank loan.
Selection Procedure Of Individual Micro Enterprise
- Selected Individual Micro Enterprise Identification Clusters.
- Preference will be given to enterprises engaged in one district with one product.
- Other enterprises which have potential will also get support through this scheme.
- Applications will be invited at the district level.
- The resource person will also survey the clusters.
- The resource person will identify the doors and wonders that have the potential to take advantage of this scheme.
- Field verification of applications received directly will be done by the resource person.
- Received applications will be presented before the district-level committee.
- District Level Committee will study the report submitted by the resource person and interview the interested candidates.
- The details of the report include the annual turnover of the enterprise, track record of payments by the enterprise, existing infrastructure, backward and forward linkages, proximity to clusters, and marketing linkage of the enterprise.
- The resource person will assist them in preparing the DPR of the cases recommended by the district-level committee so that they can get a loan from the bank.
- All the required documents along with the DPR are to be submitted to the bank for loan approval.
- The level of finalization of individual micro units to be assisted will be decided by the State Government.
Support To Group Category
Groups and clusters such as Farmer Producer Organisations (FPO), Self Help Groups, and Producer Cooperative Societies along with their entire value chain will be supported through the PM FME scheme. Assistance will be provided for sorting, grading, storage and processing, packaging, marketing, processing, etc. of agricultural produce.
For this purpose, grants at the rate of 35% will be provided with credit linkage. Apart from this, training assistance will also be provided through this scheme. The maximum limit of grant in such cases will be as prescribed
Eligibility Criteria Of FPO
- The cooperative or farmer producer organization should preferably be set up in one district for one product produced.
- Cooperative or FPO should be involved in food processing activities.
- The maximum turnover of the enterprise should be at least Rs.1 crore.
- The cost of the project should not exceed the current turnover
The members of the enterprise must have all the necessary knowledge and experience in dealing with the products for at least three years.
- The cooperative or farmer producer organization should have sufficient internal resources or approval from the state government to meet 10% of the project cost and margin money for working capital requirements.
Support To Self Help Groups
There are many self-help groups that are engaged in food processing activities. Financial assistance will be provided to self-help groups under the PM FME scheme. The details of this financial assistance are as follows:-
Seed capital will be provided at the rate of Rs.40,000 per member of the self-help group for the requirement of working capital and purchase of equipment. Preference will be given to the self-help groups which are associated with one district one product.
Not all members of self-help groups are involved in food processing, so seed capital will be made available at the union level. This amount will be given as a grant. The Self-Help Group Association is required to make this amount available as a loan to the members of the Self-Help Group.
Under this scheme, assistance will be provided to individual self-help group members, which is credit-linked grand at the rate of 35%, the maximum amount of this grant is Rs 10 lakh
A credit-linked grant of 35% will be provided as assistance for capital investment at the SHG level federation. The maximum limit of this grant will be determined from time to time.
Training and handholding support-
Training and handholding support will also be provided to the Self Help Groups. The State Rural Livelihood Mission has a large number of trained resource persons. These people have expertise in agricultural products which will be used for training, upgradation of units, handholding support, etc.
Eligibility Criteria For Seed Capital For Self-Help Groups
- The benefit of this scheme can be availed only by those self-help group members who are engaged in food processing.
- The number of seed funds should be used for the purchase of working capital and small tools.
- SHG should be engaged in food processing activity
- Before providing the seed fund to the Self-Help Group Federation, it is necessary to collect the following details about each member of the Self-Help Group:-
- Source of raw material and marketing of produce
- Annual turnover
- Details of the product being processed
- Other undertaken activities
Eligibility Criteria For Credit Linked Grant For Capital Investment For Self-Help Groups
- Self-help group members should have a minimum of 3 years of experience in one district and one product production.
- SHG should have sufficient funds to meet 10% project cost and 20% margin money.
- SHG should be engaged in food processing activity.
Support For Common Infrastructure
Under the PM FME scheme, assistance will be provided to self-help groups, cooperatives, farmer-producer organizations, private enterprises, or any government agency for common infrastructure. The eligibility of a project will be decided on the basis of benefits to farmers and industry at large, viability gap, absence of private investment, etc.
Support for common infrastructure will be available at 35% for credit-linked grants. The maximum limit of the grant will be fixed from time to time. Incubation center, one district one product common processing facility for processing of products, warehouse, cold storage, etc. will be covered for infrastructure support.
Groups To Send Proposals For Common Infrastructure And Capital Investment
- Need to prepare a DPR to get assistance
- The DPR should contain all the necessary details of the proposal like detailed proposal cost, proposed manpower, turnover, marketing channels, etc.
- This DPR should be sent to the State Nodal Agency.
- When we comment on the proposal of MoFPI after the approval of the project SNA.
- All proposals for assistance for grants in excess of Rs 10 lakh to a group should be sent to the Ministry for approval.
- After approval, the proposal will be sent to the financial institution for loan sanction.
- 50 thousand rupees will also be given for preparing DPR.
Branding And Marketing Support
Marketing and branding support will be provided to SPVs of farmer producer organizations, self-help groups, cooperatives, or micro food processing enterprises under the PM FME scheme. Marketing and branding support will be provided for one district and one product produced at the state or regional level.
Any type of training which is related to marketing will be fully funded under this scheme. The scheme will also assist in developing a common brand and packaging. Apart from this, the scheme will also help in tie-up with national and regional retail chains and state-level institutions.
Eligibility Criteria For Marketing And Branding Support
- Products and producers need to be massively scalable
- The proposal should establish management and enterprise capability to promote the unit
- Applicant should be an FPO/SHG/Cooperative/Regional State level SPV
- The enterprise must be engaged in food processing activity
- The final product is to be sold in a retail pack to the customer
- The minimum turnover of the product should be Rs 5 crore
- The proposal should belong to one district and one product
Procedure to Apply for Assistance Under Branding and Marketing
- A DPR needs to be prepared for the proposal which includes all the necessary details related to the project like the product, strategy, quality control, aggregation of production, common packaging, branding, etc.
- SNA will provide assistance up to Rs 500000 for the preparation of the DPR.
- The proposal also needs to include a flow chart of activities.
Support To State Level Technical Institutions
State-level technical institutes will be nominated by the state government for the PM FME scheme. State Level Technical Institutes to prepare PIP for State Level Technical Institutes, provide inputs to PIP, conduct capacity building training for District Resource Persons, provide inputs for branding and marketing plans, and provide consultancy support to District Resource Persons Will be responsible for The PIP prepared should include an annual training calendar for the proposed activities which will be sent to the Ministry after the approval of the State Level Approval Committee.
Eligibility Criteria Of State-Level Technical Institution
- A state-owned food processing Technology Research Institute.
- Any college or institution under the State Agricultural University or any other University.
- Institute under CSIR or any institute of the Government of India focusing on food processing.
- If the institute is a college then it should have graduation or post-graduation course in food processing technology.
- The institute should have a laboratory with the necessary equipment.
- The institute should have faculty engaged in research work and product development.
- The proposal should be recommended by the State Government
- The institution should have sufficient build-up space.
- The institute should have pilot plants for processing two products under one district one product.
Training Assistance will also be provided to individual units and groups under the PM FME scheme who are provided assistance for capital investment. Apart from this, training support will also be provided to the existing units and clusters producing One District One Product in the district.
The groups that are being given marketing and branding support will also be given training support. There is a fixed rate per hour fixed by the Ministry of Skill Development and Entrepreneurship that has to be spent on training. The training will be imparted through online modules. These modules will be of short duration.
Training through these modules will be provided on weekly basis under audio-visual support with the district.
The Process With Bank For Grant
- A nodal bank will be appointed for grant distribution at the national level
- The loan sanctioning bank has to open a mirror account in the name of the beneficiary
- The grant will be provided by the Central and State Governments in the ratio of 60:40, which will be deposited in the bank account of the beneficiary in the lending bank branch by the State and Central Government.
- This amount will be adjusted in the bank account of the beneficiary if the beneficiary account is standard and the unit is professional after a period of three years from the disbursement of the last installment of the loan
Implementation And Monitoring Mechanism Agencies
- Committee on Capacity Building and Research
- National Apex Institutions
- State-level technical Institutions
- Inter-Ministerial Committee
- Project Executive Committee
- State-level Approval Committee
- The State Nodal Department
- State Nodal Department Agency
- District Level Committee
- National Program Management Unit
- State Program Management Unit Resource Persons
- Aadhar card
- Residence proof
- Age proof
- Passport size photograph
- Incorporation certificate
- Mobile number
- Bank account
How To Apply?
- First of all, visit the Official Website of the PM FME scheme.
- The home page will open.
- On the homepage, click on online registration.
- A new page will open.
- On this new page, click on sign up.
- The registration form will open.
- On this form fill in the following information:-
- Type of beneficiary
- Email ID
- Mobile number
- Now click on the register
- After that, log in to the portal.
- Now select the beneficiary type
- Enter your user id and password
- After that click on submit
- Now click on apply now
- The application form will open
- Enter all the required details in this application form
- After that, upload all the required documents
- Now click on submit
- By following this procedure you can apply under PM FME Scheme
Applicant Login Process
- Visit the Official Website of the PM FME scheme.
- The home page will open
- Now click on login.
- After that, click on the applicant login.
- The login page will open
- Select your beneficiary type
- Now enter your user id and password
- After that click on submit
- By following this procedure you can do an applicant login.
To know more detailed information about PM FME Scheme CLICK HERE to Download the Official Notification
Through this article, we have given you all the important information related to Stree Swabhiman Yojana. If you are still facing any kind of problem then you can get your problem solution at the below-mentioned contact number.
- Address-Panchsheel Bhawan, August Kranti Marg, Khelgaon, New Delhi-110049
- Phone: 011-26406500, +91-1302281089, +91-8168001500