Govt Launches PM FME Scheme to Help Micro Food Processing Enterprises
Govt Launches PM FME Scheme to Help Micro Food Processing Enterprises

Govt Launches PM FME Scheme to Help Micro Food Processing Enterprises

  • The government launched a Rs 10,000 crore scheme for micro enterprises which offers 50% subsidy for storage and transportation to prevent distress sale by farmers.
  • The scheme, called Pradhan Mantri Formalisation of Micro Food Enterprises (PM FME), aims to bring in new technology, apart from affordable credit to help small entrepreneurs penetrate new markets.
  • Food processing minister Harsimrat Kaur Badal said the scheme will be implemented for five years until 2024-25. It will generate investment of Rs 35,000 core, generate 900,000 jobs and help 800,000 units, she said.
  • She said the Operation Greens Scheme, which has been extended from tomato, onion and potato (TOP) crops to other notified horticulture crops for providing subsidy for their transportation and storage from surplus production area to major consumption centres, will prevent post-harvest losses and distress sale by farmers when prices fall.
  • “By launching various schemes, our aim is to reduce food wastage, increase farmers’ income, push for investments in the food processing sector and create employment opportunities,” said Badal.
  • Under the PM FME scheme, micro enterprises will get 35% subsidy on project cost, with a ceiling of Rs 10 lakh. The beneficiaries will have to contribute at least 10% of the project cost while the balance will come from loans. Nearly 200,000 micro enterprises will get credit-linked subsidy support.
  • There are about 2.5 million unregistered, unorganised food processing enterprises which account for 74% employment in the food processing sector. Two-thirds of them are in rural areas and 80% are family owned, said the minister.
  • Under the scheme, meant for the unorganised sector, the expenditure will be shared by the central and state governments in the ratio of 60:40.
  • Already 100 applicants have applied for the transportation subsidy, which is for both domestic and export markets, informed Badal. The duration of the scheme will be six months, which can be extended if the scheme is successful, she said.
  • The ministry will provide the 50% subsidy for “transportation of eligible crops from surplus production clusters to consumption centres or hiring of appropriate storage facilities for eligible crops for a maximum period of three months”, said Badal.
  • The maximum subsidy amount per applicant will be Rs 1 crore during a six-month period, said the minister.

About MoFPI

The Ministry of Food Processing Industries is a ministry of the Government of India responsible for formulation and administration of the rules and regulations and laws relating to food processing in India.

  • Founded – 1947
  • Headquarters – New Delhi
  • Minister –  Harsimrat Kaur Badal
  • Minister of State – Niranjan Jyoti

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