Bihar First in PMFME Scheme

• 15 May 2025

Why in News? 

Bihar has emerged as the top-performing state in the country under the Prime Minister Micro Food Processing Enterprises Upgradation (PMFME) Scheme. 

 Key Points 

• About the Scheme: 
  • The PMFME Scheme aims to boost the competitiveness of existing private micro-enterprises operating in the unorganised food processing sector. 
  • It also seeks to promote the formalisation of this sector by encouraging structured growth and regulatory integration. 
  • The PMFME Scheme is operational for a period of five years from 2020-21 to 2024-25 with an outlay of Rs 10,000 crore. 
• Focused Areas: 
  • The scheme adopts One District One Product (ODOP) approach to leverage the advantages of scale with respect to procurement of inputs, common services and marketing of products. 
  • Other focus areas include waste to wealth products, minor forest produce and aspiring districts. 
  • Assistance Available under PMFME Scheme: 
    • Individual/Group Category Micro Enterprises: 
      • 35% of the eligible project cost will be given as credit-linked capital subsidy, with a maximum limit of Rs 10 lakh per unit. 
    •  Self Help Groups (SHGs) for Seed Capital: 
      • Seed capital of up to Rs. 40,000 per member of SHGs engaged in food processing with a maximum of Rs 4 lakh per SHG for working capital and purchase of small equipment. 
    • Support for Common Infrastructure: 
      • Credit-linked capital subsidy of 35% with a maximum of Rs 3 crore to support any Government agency for setting up FPOs, SHGs, cooperatives and common infrastructure. 
    • Capacity building: 
      • The scheme envisages training for Entrepreneurship Development Skilling (EDP+), a modified programme to meet the requirements of the food processing industry and product specific skills. 
    • District Resource Persons (DRPs) have been appointed to provide assistance to micro food processing enterprises in complying with FSSAI and other statutory requirements.