PMFME — PM Formalisation of Micro Food Processing Enterprises
35% capital subsidy up to ₹10L for micro food processing units under ODOP
- Funding amount
- ₹10L (subsidy)
- Funding type
- Subsidy
- Provider
- Ministry of Food Processing Industries (MoFPI) (Government)
- Application deadline
- Rolling
- Eligible stage
- Any stage
- Location
- Open to startups registered in India
Overview
The PM Formalisation of Micro Food Processing Enterprises (PMFME) scheme, run by the Ministry of Food Processing Industries (MoFPI), provides a 35% credit-linked capital subsidy of up to ₹10 lakh for individual micro food-processing units. The scheme follows the One District One Product (ODOP) approach, promoting local food specialties. It also offers additional support: a branding and marketing grant of up to ₹50,000 for Self Help Groups (SHGs), common infrastructure grants for Farmer Producer Organisations (FPOs) and cooperatives, and free project report (DPR) preparation and handholding by District Resource Persons. The subsidy is non-repayable and directly reduces the principal outstanding on the borrower's term loan.
Highlights
- Individual micro food-processing units, SHGs, FPOs and cooperatives seeking 35% credit-linked subsidy (up to ₹10 lakh) for ODOP-aligned food processing upgrades.
- Additional branding and marketing grant of ₹50,000 for SHGs.
- Common infrastructure grants for FPOs and cooperatives.
- Free DPR preparation and handholding by District Resource Persons.
- No equity — subsidy is non-repayable and reduces the loan principal.
Who can apply
Eligible applicants include individual micro food-processing enterprises (both existing and new), Self Help Groups (SHGs), Farmer Producer Organisations (FPOs), cooperatives, and producer groups. Priority is given to units working with the ODOP product of their district. There is no specific state or industry restriction beyond micro food processing.
PMFME — PM Formalisation of Micro Food Processing Enterprises is open to startups at any stage. It is open to startups registered anywhere in India.
- Eligible stage
- Any stage
- Location
- Open to startups registered in India
Deadline & timing
PMFME — PM Formalisation of Micro Food Processing Enterprises accepts applications on a rolling basis — there is no fixed cut-off date, so eligible startups can apply at any time. Because rolling programmes can pause without notice, confirm the window is still open on the official site before you start.
What the funding covers
- 35% credit-linked capital subsidy capped at ₹10 lakh per individual micro unit for upgrading or setting up food processing facilities.
- SHGs can avail an additional branding and marketing grant of up to ₹50,000.
- FPOs and cooperatives are eligible for common infrastructure grants.
- Free project report (DPR) preparation and handholding by District Resource Persons.
- The subsidy is non-repayable — it is adjusted against the borrower's term loan, reducing the principal outstanding. No equity is taken.
About the provider
PMFME — PM Formalisation of Micro Food Processing Enterprises is offered by Ministry of Food Processing Industries (MoFPI), a government body. As a government-backed subsidy, it is publicly funded and open to eligible startups across India. You can verify current details and timelines on the provider's official website before applying.
Documents you’ll need
Before you apply to PMFME — PM Formalisation of Micro Food Processing Enterprises, keep the following documents ready:
- A pitch deck or short business plan describing the problem, product and traction
- Company registration documents and PAN
- Founder identification (PAN / Aadhaar) and brief profiles
- Recent financial statements or projections
- Product details — a demo, prototype or working link if available
Exact requirements are confirmed on the official application portal — treat this as a preparation checklist.
Who this is best for
PMFME — PM Formalisation of Micro Food Processing Enterprises is best suited for startups in India seeking non-dilutive funding of ₹10L. If that describes your startup, review the eligibility criteria above before applying.
Frequently asked questions
What is PMFME?
PMFME stands for PM Formalisation of Micro Food Processing Enterprises. It is a central scheme by the Ministry of Food Processing Industries (MoFPI) that offers a 35% credit-linked capital subsidy (up to ₹10 lakh) to micro food-processing units following the ODOP approach.
How much funding is offered?
Individual micro units can receive up to ₹10 lakh as a 35% capital subsidy. SHGs can get an additional branding and marketing grant of up to ₹50,000.
What is the application deadline?
The scheme is rolling and always open — there is no fixed deadline. Applications are accepted year-round.
Who is eligible to apply?
Eligible entities include existing or new micro food-processing enterprises, SHGs, FPOs, cooperatives, and producer groups. Preference is given to those working with the district's ODOP product.
Does PMFME take equity?
No. The benefit is a non-repayable subsidy — no equity is taken. The subsidy is credit-linked and applied against your bank loan.
What documents are needed?
You need a term loan sanction letter from a bank or NBFC, Udyam Registration, identity and land documents, and an ODOP-aligned project proposal. District Resource Persons can help with DPR preparation.
How do I apply?
Apply online at the official PMFME portal (pmfme.mofpi.gov.in). You must first obtain a bank loan sanction for your project cost. Then upload the required documents on the portal.
What is credit-linked subsidy?
The subsidy is linked to a bank loan. You need to get a term loan sanctioned first. The 35% subsidy is then credited against your outstanding loan, reducing your principal.
Is MSME or DPIIT registration required?
Yes, you need Udyam Registration (MSME registration) to apply. DPIIT registration is not mentioned as a requirement.
Can existing units apply?
Yes, both existing and new micro food-processing units are eligible to apply for the subsidy.
Who offers PMFME — PM Formalisation of Micro Food Processing Enterprises?
PMFME — PM Formalisation of Micro Food Processing Enterprises is offered by Ministry of Food Processing Industries (MoFPI), a government body. It is provided as non-dilutive funding.
More funding from Ministry of Food Processing Industries (MoFPI)
Ministry of Food Processing Industries (MoFPI) runs another program listed on startupfunds — compare them before you decide where to apply.
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