PM Micro Food Processing Enterprises Scheme (PMFME)

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Under the Prime Minister's Micro Food Processing Enterprises Scheme (PMFME), entrepreneurs in Jaipur and Rajasthan are eligible for a 35% subsidy for setting up or expanding food processing industries.

The Ministry of Food Processing Industries (MoFPI) is implementing a centrally sponsored PM Formalisation of Micro Food Processing Enterprises Scheme (PMFME) Scheme for providing financial, technical, and business support to micro food processing enterprises in India.

Subsidy Details: The PMFME Scheme provides a subsidy of 35% of the eligible project cost or ₹10 lakh, whichever is lower, for setting up new food processing units.
- This financial assistance is aimed at industries related to fruits and vegetables, grains, dairy products, oilseeds, animal feed, bakery products, and other food products like sago and asafoetida.
Application Process: Applicants must apply online through the PMFME-MOFPI Portal.
- The State Nodal Agency for the scheme is the Rajasthan State Agricultural Marketing Board based in Jaipur, with the Agricultural Produce Market Committee (APMC) serving as the district-level nodal agency.
Support for Applicants: The government has appointed District Resource Persons (DRPs) to assist applicants with application procedures, including loan details and scheme-related guidance.
Eligibility and Requirements: The project cost does not include land costs, and technical civil work should not exceed 30% of the total project cost.
- The scheme is valid until 31st March 2026, and aims to establish 634 food processing units in Jaipur district alone.

About: Food processing is a type of manufacturing in which raw materials are processed into intermediate foods or edible items using scientific knowledge and technology. 
- It improves the storability, portability, palatability, and convenience of the finished product.
Significance:
- As per the latest Annual Survey of Industries (ASI) 2019-20, 12.2% of persons in the registered manufacturing sector were employed in the food processing sector.
- The value of agri-food exports, including processed food exports, was about 10.9 % of India's total exports during 2021-22
Government Initiatives:
- 100% Foreign Direct Investment (FDI) approval under automatic route has been permitted for the food processing sector
- A Special Food Processing Fund of Rs. 2000 crore was set up with National Bank for Agriculture and Rural Development (NABARD) to provide affordable credit for investments in setting up Mega Food Parks (MFP) as well as processing units in the MFPs.

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