Overview of the PMFME Scheme Awareness Programme in Srinagar                           

Recently, a one-day awareness programme focusing on the Pradhan Mantri Formalisation of Micro Food Processing Enterprises (PMFME) scheme took place in Srinagar. Let’s delve into the details of this scheme and its significance.

Understanding the PMFME Scheme

• The Pradhan Mantri Formalisation of Micro Food Processing Enterprises (PMFME) Scheme, initiated on June 29, 2020, is a Centrally Sponsored Scheme led by the Ministry of Food Processing Industries. Its primary aim is to address the hurdles encountered by micro-enterprises while harnessing the potential of groups and cooperatives to bolster the enhancement and formalisation of these enterprises.

Objectives:

• Enhancing Capability: The scheme aims to bolster the capacity of microenterprises by facilitating increased access to credit, integration with organized supply chains, and support for transitioning existing enterprises into a formal framework.
• Access to Common Services: It endeavors to provide increased access to common services such as processing facilities, laboratories, storage, packaging, marketing, and incubation services.
• Strengthening Institutions and Research: The scheme aims to reinforce institutions, research, and training in the food processing sector, along with improving access to professional and technical support for enterprises.

Financial Allocation:

• The PMFME Scheme has a total outlay of ₹10,000 crores over a five-year period from 2020-21 to 2024-25.
• The funding distribution involves a sharing ratio between the Central and State Governments, with variations for different regions.

Coverage and Benefits:

• The scheme intends to directly assist 2,00,000 micro food processing units through credit-linked subsidies.
• It aims to support the growth of the sector by providing adequate common infrastructure and institutional architecture.

Components of Support:

• Support to Individuals and Groups: The scheme offers credit-linked subsidies to micro-enterprises and provides branding and marketing support.
• Strengthening Institutions: It supports the strengthening of institutions and facilitates the setting up of a robust project management framework.

Financial Assistance:

• Micro-enterprises are eligible for credit-linked subsidies at 35% of the project cost, with a ceiling of Rs. 10 lakh, along with contributions from beneficiaries and loans.
• Support is extended to Farmer Producer Organizations (FPOs), Self-Help Groups (SHGs), Cooperatives, and existing as well as new micro food processing entrepreneurs.

Conclusion

• The PMFME Scheme serves as a significant initiative aimed at fostering the growth and formalization of micro food processing enterprises, thereby contributing to the development of the food processing sector and the overall economy.