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The Pradhan Mantri Formalisation of Micro Food Processing Enterprises (PMFME) Scheme
in Tamil Nadu: A Catalyst for Growth

PMFME

The PMFME scheme, launched under the Atmanirbhar Bharat Abhiyan, is a visionary step by the government to modernize and enhance the competitiveness of the micro food processing sector. With a special focus on supporting unorganized enterprises, the scheme aims to formalises the current food processing enterprises with the organised sector, and bolster the overall food processing capacity of the country.

 

The formalisation is in terms of

 

  •            Financial inclusion i.e., access to credit assistance
  • Capacity building by imparting training to enhance their skill in terms of entrepreneurship and domain specific
  • Availing the required compliances like Udyam registration, FSSAI license and GST certificate (if required) etc.

 

In Tamil Nadu, the PMFME scheme has been a harbinger of change for the local food processing industry. The state, known for its rich culinary heritage and diverse agricultural produce, has seen substantial growth in this sector due to the scheme’s interventions.

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Scheme and its component, description, eligibility, target and achievement

PMFME

 

 

S.no Component Description Target till 2025 Achievement
1. Credit linked capital subsidy to Individual & Group
  • Credit linked subsidy @ 35% with max. ceiling of Rs. 10 lakh
  • Applicatiple to Individual, Proprietorship firms, Partnership firms, Pvt. Ltd. Companies, FPOs, NGO, SHG, Co-operatives, and Govt organization.

Individual

12128 units

Subsidy: 363.84 Cr


 


Group

221 Units

Subsidy: 11.05 Cr


Individual

11925 Units, 

Subsidy: 226.95 Cr


 


Group

31 units

Subsidy: 1.10 Cr

2. Seed Capital for SHG
  • Rs. 40,000 per member of SHG is provided who are involved in food processing activity as grant for purchase of small tools & RM, and same shall be used as revolving fund within federation

  13560 enterprises

  Grant: 59.50 Cr


11578 enterprises

 Grant: 43.77 Cr
3. Common Infrastructure

 

  • Credit linked Grant @ 35% with max. ceiling of Rs. 3 Cr for common infrastructure - Support to Common processing facility, labs, incubation center, warehouse, cold storage, etc.
  • For FPOs/ FPCs, Cooperatives, SHGs and Govt. Agencies.

  171 Units

  Subsidy: 25.68 Cr


5 Units

Subsidy: 6.95 Cr

4. Branding and Marketing
  • Support to groups of FPOs/ SHGs/ Cooperatives or an SPV of micro food processing enterprises or an SPV for developing a common brand, standardization & packaging with a Grant up to 50%. of the project cost
  • Product Standardization, Trademark registration, market study, packaging material, warehousing/storage rentals, Listing cost and institutional linkage, Advertisements, training for sales & marketing, logistic support.

  5 Units

  Grant: 2.00 Cr


  1 Proposal sanctioned

  Grant: 0.15 Cr

5. Mini Tri foods
  • Tribal units benefitted from VDVK scheme are eligible for this assistance.
  • 2 VDVK units formed as a cluster is provided with a grant of 10 lakhs rupees. 

  5 units

  Grant: 0.50 Cr


  2 units

  Grant: 0.20 Cr

6. Common Incubation Centre
  • Incubation Center shall be the processing cum incubation facility based on ODOP along with 2-4 allied product lines available for the end users on custom hiring basis for startups and smaller food processing units.
 
  • TNAU, Coimbatore
  • KVK Madurai
  • ICAR- NRCB Banana
  • SASTRA Deemed University

PMFME

Highlights of achievements

 

  •        Tamil Nadu has been awarded as Top 5 outstanding performance state by Hon’ble President of India during the World Food India 2023 at Pragathi Maidan, New Delhi
  •       Tamil Nadu is first among all state in terms of accomplishing target % in individual credit linked subsidy target as on 31.03.2024

 

The state’s achievements under this scheme are paving the way for a more self-reliant India, with a focus on local resources, traditional knowledge, and modern practices converging to create a resilient food processing industry and supporting Vocal for local initiative.