About this programme
PMFME is a centrally sponsored scheme launched in June 2020 to formalize and support micro food processing enterprises across India. It provides credit-linked capital subsidy (35% of project cost, max Rs 10 lakh per unit) and seed capital for SHGs, promoting formalization of the unorganized food processing sector. The scheme runs from 2020-21 to 2025-26 with an outlay of Rs 10,000 crore supporting 2 lakh micro enterprises, primarily using the One District One Product (ODOP) approach. It is run by Ministry of Food Processing Industries.
A subsidy reduces a specific cost — typically reimbursed or adjusted after you incur and document the expense, rather than paid upfront. The amount and form of support that actually apply to you depend on the programme’s rules and how your application is assessed — they are not fixed for every applicant.
It is aimed at businesses in food processing - odop (one district one product). Like most government programmes, it has its own eligibility conditions, documentation and application window, and these terms are revised from time to time. Because of that, it is worth confirming the current eligibility, amount and deadline on the official programme page before you invest time in applying.
How it works
Beneficiary contributes minimum 10% of project cost; PMFME provides 35% capital subsidy (max Rs 10 lakh); remaining amount (55%) provided as bank loan. State Nodal Agencies facilitate registration, DPR approval, and bank linkage. Subsidy is credited to beneficiary account post-loan disbursement by banks.
Who can apply
Micro food processing enterprises with ownership rights; at least VIII standard pass educational qualification required. Applicant must contribute minimum 10% of project cost. Eligible for individual/group micro enterprises, SHGs, Farmer Producer Organizations, and cooperatives engaged in food processing activities.
How to apply
- Register on PMFME portal at pmfme.mofpi.gov.in or collect offline application form
- Prepare Detailed Project Report (DPR) with product profile, cost estimates, marketing plan, and quality control details
- Submit application with supporting documents to State Nodal Agency or District Nodal contact
- DRP review and approval within stipulated time
- Bank processing and loan sanction; subsidy disbursement post-loan drawdown
Documents you’ll typically need
- Aadhaar copy and photo of all promoters/guarantors
- Address Proof (utility bills not older than 2 months - electricity, telephone, water, gas)
- Udyam/Udhyog Aadhar registration certificate
- Detailed Project Report (DPR)
- Bank Guarantee documents (if applicable)
- Loan statement/sanction letters of existing loans (if any)
- Insurance policy copies (if existing unit)
The exact checklist depends on the programme and your specifics.
Frequently asked
What is the subsidy amount under PMFME?
35% credit-linked capital subsidy on eligible project cost, with a maximum ceiling of Rs 10 lakh per unit.
What is the ODOP approach?
One District One Product (ODOP) is the framework adopted to identify specific products from each district and develop their value chains for scale benefits in procurement, services, and marketing.
Is PMFME limited to specific food products?
No, the scheme covers all micro food processing activities including agro-processing, dairy, bakery, meat processing, seafood, and other value-added food products.
What happens if I do not have Udyam registration?
Udyam registration is required; applicants without existing registration must obtain it before or during the application process to be eligible.
Reviewed July 2026. Government programmes change — confirm current eligibility, amounts and deadlines on the official programme page before you apply. CapEasy is a private consultancy and is not affiliated with any government authority.