PM-FME — 35% subsidy for micro food processing units
Government of India (Ministry of Food Processing Industries)
Overview
A central scheme giving financial, technical and business support to unorganised micro food processing units. It helps small food businesses — pickles, spices, sweets, snacks, flattened and puffed rice, bakeries and so on — formalise, access credit, train and build brands.
It offers a bank-linked 35% subsidy of up to Rs 10 lakh, and seed capital of up to Rs 40,000 per member for SHGs engaged in food processing. It also provides skill training, packaging and branding support, and common infrastructure for processing, storage and incubation.
New or existing micro food units — individuals, proprietorships, partnerships, SHGs, FPOs and cooperatives — can apply. Units aligned with the district's One District One Product (ODOP) get preference. Apply on the PM-FME portal (pmfme.mofpi.gov.in).
At a glance
- Administering authority
- Government of India (Ministry of Food Processing Industries)
- Scheme type
- Business & Finance, Employment & Skills
- Place of posting / area
- All India
- Application mode
- Online
- Important dates
- Applications accepted year-round
Benefits
- Bank-linked 35% subsidy of up to Rs 10 lakh
- Seed capital of up to Rs 40,000 per member for SHGs in food processing
- Skill training for entrepreneurs, workers and SHG members
- Help with common brands and better packaging
- Common infrastructure such as processing, storage and incubation centres
- Help with registration, compliance and access to institutional credit
Eligibility
- New or existing micro food processing enterprises (investment as per MSME norms)
- Individuals, proprietorships, partnership firms, SHGs, Farmer Producer Organisations (FPOs) and cooperatives
- Mainly unregistered or informal units seeking formalisation
- SHG members in food processing are eligible for seed capital
- Must be willing to take a bank loan for the capital subsidy
- Preference for units aligned with the district's ODOP product
- Must obtain registrations such as FSSAI and follow food safety standards
Required documents
- Identity proof
- Business details
- Bank account information
- Project report
How to apply
- Register online on the PM-FME portal
- Submit the form with enterprise details, business plan and project proposal
- Upload identity proof, business details, bank information and the project report
- The District Resource Person (DRP) and District Level Committee (DLC) review the application
- Approved applications go to banks for credit appraisal and loan sanction
- After bank approval, the subsidy is sanctioned; training and technical support may follow
- The subsidy is released after loan disbursement and project progress
Last updated: 1 Nov 2026
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