The Central Government’s PMFME scheme (Pradhan Mantri Formalisation of Micro Food Processing Enterprises) is meant to formalise the country’s unorganised micro food processing units. It was launched by the Ministry of Food Processing Industries (MoFPI) on 29 June 2020 under the Atmanirbhar Bharat Abhiyan. It is a Centrally Sponsored Scheme. Pickle makers, spice makers, bakeries, millet processors, dal and oil units and similar small food businesses — which have so far run without formal credit, modern machinery and branding — get support under this scheme.
What is given
An individual micro food processing unit gets a credit-linked subsidy of 35% of the eligible project cost, up to a maximum of ₹10 lakh per unit. This subsidy is not paid directly to the applicant — after the loan is sanctioned and the project is completed and verified, the bank adjusts it against the outstanding loan. Self Help Group (SHG) members get ₹40,000 per member as seed capital for working capital and small tools (up to ₹4 lakh per SHG). Common infrastructure (cold storage, processing and packaging facilities) gets support of up to ₹3 crore.
One District One Product (ODOP)
PMFME runs on the principle of One District One Product (ODOP) — each district focuses on one signature food product. The ODOP list covers 726 districts across 35 states and Union Territories. This organises raw material, shared facilities, branding and sales around a single product. Before applying, check your district’s ODOP product on pmfme.mofpi.gov.in.
Who can apply
The scheme is mainly for the upgradation of existing unorganised micro food processing units — that is, small units that are already working. Individual entrepreneurs, proprietorships and partnership firms, FPOs, SHGs and producer cooperatives can apply. Provisions for entirely new units can vary, so always check the current guidelines. The Centre-State cost-sharing ratio is 60:40. Collateral-free credit may also be available through the CGTMSE (up to ₹5 crore) or Mudra’s CGFMU guarantee — this depends on the loan structure.
Scheme period and application
PMFME’s original period was 2020-21 to 2024-25, which was extended into the financial year 2025-26. The current status of new applications in November 2026 has not been confirmed by an official source — so before applying, always check the current status on pmfme.mofpi.gov.in. Applications are made online on the portal; the process is completed with the help of the state nodal agency at the district level and NIFTEM. The scheme helpline is 9254997101 to 9254997105. Do not pay anyone for applying — take information only from the official portal.
Frequently Asked Questions
Q1: How much subsidy does PMFME give?
A: 35% of the project cost, up to ₹10 lakh per unit; SHG members also get ₹40,000 seed capital.
Q2: What is ODOP?
A: One District One Product — each district focuses on one signature food product; the list covers 726 districts.
Q3: Does the subsidy come directly into the account?
A: No — it is credit-linked and back-ended; the bank adjusts it against the outstanding loan after loan sanction and project verification.
Q4: Where do I apply?
A: On pmfme.mofpi.gov.in — also check the current status of new applications there; the helpline is 9254997101–9254997105.
Useful links
- PMFME official portal: https://pmfme.mofpi.gov.in/
- PMFME scheme on MyScheme: https://www.myscheme.gov.in/schemes/pmfmpe
- Next Action: see all 726 Central Government schemes — /english/kendra-sarkar-ki-yojnayen-2/
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