PM FME Scheme — ₹10 Lakh Subsidy, Food Processing Units

What is PM FME Scheme?

Pradhan Mantri Formalisation of Micro food processing Enterprises (PM FME) is the Government of India scheme to support micro food processing enterprises — small-scale units processing fruits, vegetables, grains, spices, dairy, meat, fish, and other food products.

Key features:

• 35% credit-linked subsidy on project cost — capped at ₹10 lakh per unit
• Focus on ODOP (One District One Product) — each district has a priority food product
• FPOs, SHGs, cooperatives get higher support (up to 35% subsidy for group projects)
• Common infrastructure (cold storage, sorting/grading facilities) supported at cluster level
• Budget: ₹10,000 crore over 5 years (2021–2026)

Who is Eligible?

• Micro enterprises — existing or new food processing units
• Must process food products (not non-food items)
• Project cost: between ₹10 lakh and ₹3 crore (35% subsidy; capped at ₹10L)
• Informal / unregistered units can also apply (the scheme helps with formalisation)
• Priority: ODOP products of the district (e.g., if your district's ODOP is mango, mango pickle/pulp units get priority)

Group entities (SHGs, FPOs, cooperatives):

• Projects up to ₹10 crore with 35% subsidy (up to ₹3 crore/project)

What Products Can Be Processed?

• Fruits: Mango, banana, guava, tomato — pickle, juice, pulp, candy, jam
• Vegetables: Potato chips, dehydrated onion, leafy vegetable powder
• Grains: Flour mill, rice bran oil, poha, murmura, papad
• Spices: Spice grinding, masala powder
• Dairy: Ghee, paneer, khoa, cheese, yoghurt
• Meat/Fish: Processed meat, dried fish, fish pickle
• Honey, Beeswax, Jaggery, Turmeric, Ginger
• Ready-to-eat foods, bakery, confectionery

How to Apply — Step by Step

1. Go to pmfme.mofpi.gov.in
2. Click "Apply" or "Online Application"
3. Register with mobile number + Aadhaar
4. Fill in:
   • Business details — existing or proposed unit
   • Food product and processing details
   • Project cost and loan requirement
   • ODOP product connection (if applicable)
5. The application is processed by your State Nodal Agency (SNA) — typically State Food Processing Department
6. If approved: subsidy amount is linked to a bank loan (credit-linked, not direct grant)

Credit-Linked Subsidy — How It Works

PM FME is a credit-linked subsidy — meaning:

1. You first get a bank loan for the project (from NABARD, SIDBI, or any bank)
2. Government then deposits 35% of project cost (up to ₹10L) into the loan account
3. Your effective loan is reduced by the subsidy amount

Example:

• Project cost: ₹25 lakh
• Bank loan: ₹25 lakh
• PM FME subsidy: 35% × ₹25L = ₹8.75 lakh (deposited in loan account)
• Your actual net loan to repay: ₹25L − ₹8.75L = ₹16.25 lakh

Additional Support Under PM FME

Beyond the capital subsidy, PM FME also provides:

• Free training — product quality, packaging, marketing, FSSAI compliance
• Branding and marketing support — help getting your product on e-commerce / retail shelves
• FSSAI license assistance — help registering the food processing unit
• Seed capital for SHGs — ₹40,000 per SHG member for working capital

Documents Required

1. Aadhaar card of proprietor/partners/director
2. Business registration (MSME / Udyam registration preferred)
3. Land/premises proof — ownership or lease for the processing unit
4. Project report — detailed with cost estimates
5. Bank account details
6. FSSAI registration (or commitment to get it — PM FME helps with this)

Frequently Asked Questions

What is ODOP and why is it important for PM FME?

ODOP (One District One Product) identifies one key agricultural/food product for each district that will be promoted as the local specialty. PM FME gives priority approval to units processing the ODOP product of their district. Check your district's ODOP at www.onedistrict oneproduct.gov.in.

My unit is new (not yet set up). Can I still apply?

Yes — PM FME supports new and existing micro food processing units.

Do I need FSSAI license before applying?

Not before applying, but you must get it after project approval. PM FME provides assistance to get FSSAI Basic/State/Central license as part of formalisation.

Can a woman SHG apply for group processing unit?

Yes — SHGs, especially women's SHGs, get priority. Groups can access the ₹3 crore cap (higher than individual ₹10 lakh cap) and often get additional support from NABARD/NRLM.

Official Links

• Apply: pmfme.mofpi.gov.in
• Ministry of Food Processing: mofpi.gov.in
• Contact: Your State Food Processing Department / State Nodal Agency
• Helpline: 011-26406557 (MoFPI)