The Ministry of Food Processing Industries (MoFPI) is preparing a proposal to extend the Pradhan Mantri Formalisation of Micro Food Processing Enterprises (PMFME) scheme for another five years with revised guidelines aimed at strengthening India’s micro food processing sector.
Speaking to reporters, Devesh Deval, Joint Secretary at the Ministry of Food Processing Industries, said the centrally sponsored scheme, which was launched in 2020, has currently been extended until September 2026. The ministry is now working on a proposal to continue the programme for the next five years with several key modifications designed to improve support for micro-enterprises and entrepreneurs.
According to the ministry, the proposed changes may include increasing the upper limit of the credit-linked subsidy beyond the current cap of ₹10 lakh per unit. At present, the PMFME scheme offers financial assistance of up to 35 per cent of the eligible project cost for individuals or groups setting up or upgrading food processing units, subject to a maximum subsidy of ₹10 lakh per micro-enterprise.
The ministry is also planning to place greater emphasis on encouraging women entrepreneurs under the revised framework. In addition, the updated proposal is expected to focus more on branding, marketing support, and the development of food processing enterprises in the North-Eastern region of the country.
The PMFME scheme was introduced to address challenges faced by micro food processing units, including lack of access to finance, technology, branding, and formal market linkages. The initiative also aims to support the formalisation and modernisation of small-scale food processing businesses by promoting group-based approaches, cooperatives, and self-help groups.
Officials believe that extending the scheme with enhanced financial and marketing support will help strengthen the country’s food processing ecosystem, generate employment opportunities, and improve the competitiveness of micro-enterprises in domestic and export markets.
The food processing sector continues to play a crucial role in India’s agricultural economy, and the proposed expansion of the PMFME scheme is expected to further support rural entrepreneurship, value addition, and sustainable growth across the sector.