The Centre has extended the Pradhan Mantri Formalisation of Micro Food Processing Enterprises (PMFME) Scheme till September and is considering further continuation during the duration of the 16th Finance Commission period (2026–31), according to Union Food Processing Industries Minister Chirag Paswan.
In an interview with TNIE, he says the programme is now expected to focus on improving access to institutional credit, strengthening food safety and quality standards, and expanding district-based value chains under the One District One Product (ODOP) initiative. Excerpts:
How much progress has been made under the PMFME Scheme so far?
The scheme has achieved its target of supporting two lakh beneficiaries under the Credit Linked Subsidy component as of June 30, 2026, marking a significant milestone in strengthening the micro food processing sector under the Aatmanirbhar Bharat initiative.
It has leveraged `20,434.81 crore in investment, `17,032.53 crore in institutional bank credit and `5,954.57 crore in subsidy support. The scheme has also facilitated the formalisation of more than 75,000 enterprises through Udyam, FSSAI and GST registrations, supported 4,18,293 SHG members through seed capital assistance and generated over six lakh direct employment opportunities across the country.
Beyond financial assistance, the scheme has strengthened the food processing ecosystem by promoting enterprise formalisation, technology upgrade, entrepreneurship development, common infrastructure, branding and market linkages through the ODOP approach.
Given the scheme’s performance, is the government considering extending it? What are the latest figures on enterprises assisted, jobs created and formalisation?
In view of its positive impact, the scheme has been temporarily extended up to September, and a proposal for its continuation during the 16th Finance Commission period (2026–31) is under consideration.
The scheme is sector-neutral and supports all 16 eligible food processing sectors, including fruits and vegetables, cereals, pulses, dairy, fisheries, meat and poultry, spices, oilseeds, bakery, millet-based products, ready-to-eat foods and other food processing activities. It also promotes district-specific value chains through the ODOP approach. It has generated employment for over six lakh persons.
Which states have performed best under the scheme?
Till June 30 this year, the top-performing states under the Credit Linked Subsidy component of the PMFME are Bihar (32,100 loan sanctions), Maharashtra (31,236), Uttar Pradesh (26,465), Tamil Nadu (19,328) and Madhya Pradesh (15,946).
The strong performance of these states can be attributed to proactive implementation by state governments, effective coordination with banks and district administrations, active engagement of district resource persons (DRPs), regular monitoring at the state and district levels and sustained awareness and capacity-building initiatives. These best practices can be replicated by other states to improve outreach, accelerate formalisation and enhance the scheme’s performance.
What share of beneficiaries are women, persons of Scheduled Castes, Scheduled Tribe categories and entrepreneurs from the Northeast?
The PMFME places special emphasis on inclusive development by ensuring adequate representation of disadvantaged sections. So far, 87,312 women have benefited under the Credit Linked Subsidy component, accounting for about 44% of total beneficiaries. SC beneficiaries number 16,843 (about 8.4%), while ST beneficiaries total 11,310 (about 5.6%).
In the Northeast, 8,431 beneficiary enterprises have been supported under the Credit Linked Subsidy component, along with seven incubation initiatives or common infrastructure projects. Seed capital assistance amounting to `197.82 crore has also been provided to 62,894 SHG members.
Many micro food processors struggle to access bank credit despite the credit-linked subsidy. What steps is the government taking to improve loan approvals?
The ministry works closely with 197 participating banks, states, the Department of Financial Services and state level bankers’ committees to improve credit flow under the PMFME. Beneficiaries receive handholding support through DRPs in preparing detailed project reports (DPRs), submitting online applications and securing credit linkage.
Food Processing Entrepreneurship Development Programmes improve project quality and creditworthiness, while model DPRs have been developed to facilitate appraisal by banks. Regular review meetings with banks and states help expedite loan sanctions.