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PMFME — PM Formalisation of Micro Food Processing Enterprises — Frequently Asked Questions

FAQ

Answers to the questions founders most often ask about PMFME — PM Formalisation of Micro Food Processing Enterprises — who qualifies, the funding amount, required documents and how the application works.

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.

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