PMFME Scheme Empowering SMEs, Tribal Women And Rural Farmers

Micro food entrepreneurs will be directly empowering the farming community through the scheme.

The central government has introduced several schemes and initiatives to promote entrepreneurship among tribal and rural farmers in the agriculture industry. These schemes are bringing together self-help groups among farming communities and enabling them to become financially independent and technologically savvy.

What is the PMFME scheme?

The Prime Minister’s Formalisation of Micro Food Enterprises (PMFME) scheme is a central and state government scheme for farmers. Under this scheme, aspiring entrepreneurs in the agriculture sector can avail INR 10 Lakh in funding to start their business. Aimed at doubling the income of farmers, PMFME is implemented under the ‘One District One Product’ program. The scheme became operational in 2021-2021 and will go on until 2024-25, facilitating the setup of 2 lakh micro processing units during the period of 5 years.

Support for micro food enterprises

Credit linked subsidy

Micro food processing enterprises will receive upgrade support by the Government through PMFME scheme. The enterprises will be set up or upgraded through credit linked subsidy. The enterprises will also enjoy financial, technical, and business support. Eligible projects can avail credit-linked capital subsidy at 35% of the project cost with a maximum ceiling of INR 10 Lakh per unit.

Capacity building or training support

Enterprises availing capital investment as well as other existing units will be provided capacity building or training support in the following focus areas

Areas of focus

        • Entrepreneurship development
        • Marketing
        • Bookkeeping
        • Registration
        • Compliance with FSSAI standards
        • Udyog Aadhar
        • GST Registration
        • General hygiene
        • Other essential functions

Specially designed training

The micro enterprise units will go through specially designed training for focus areas like machine operations, hygiene issues, procurement, packaging, storage, new product development, etc.

Success rate of the PMFME scheme

PMFME is a centrally sponsored scheme under the Aatmanirbhar Bharat initiative by the Ministry of Food Processing Industry (MoFPI). In the span of one year since its launch, PMFME has been implemented in 35 states and Union Territories. Milestones achieved in one year include launch of the GIS (Geographic Information System) digital map for all states and UTs. Agreements and MoUs (Memorandum of Understanding) were signed with 11 banks that are official lending partners of PMFME, and the Union Bank of India which is the Nodal Bank for the scheme. The National Rural Livelihood Mission sanctioned INR 25.25 Cr to 8040 SHG members (Self Help Group) as seed capital. MoUs were signed with NAFED (National Agricultural Cooperative Marketing Federation of India) and TRIFED (Tribal Cooperative Marketing Federation of India) for Marketing and Branding support.


The scheme became operational in 2021-2021 and will go on until 2024-25, facilitating the setup of 2 lakh micro processing units during the period of 5 years.The scheme became operational in 2021-2021 and will go on until 2024-25, facilitating the setup of 2 lakh micro processing units during the period of 5 years.

What’s in it for me?

Aspiring agriculture entrepreneurs who can leverage villagers and farmers to create food products will benefit from the scheme. Also, entrepreneurs who can empower tribal farmers by purchasing raw material directly from them and using branding and digital marketing will benefit from the incentives.

PMFME has been very beneficial for self-help groups and groups of farmers. It’s empowering rural and tribal farmers and women to assume leadership roles. By utilising the incentives and benefits from the scheme they can improve the financial conditions and work towards the collective welfare of their communities. But more importantly, co-founders and individual entrepreneurs of agricultural enterprises who are non-farmers can apply for the PMFME scheme and directly empower the underprivileged sections like tribal women and impoverished farmers. Your enterprise can create food products like packaged spices, ethnic coffee, etc. for which you will no doubt be needing expert hands and the experience of these rural farmers.

DU Desk
DU Desk
Stories from DU Desk are the collective efforts of our in-house authors, guest authors and subject matter experts who collate and distill their ideas and thoughts to bring out actionable insights for our readers.



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