Kerala Named Best-Performing State Under PMFME Scheme, Supports 10,175 Entrepreneurs

Kerala has been recognised as the best-performing state in the medium category for implementing the Pradhan Mantri Formalisation of Micro Food Processing Enterprises (PMFME) Scheme, earning national recognition for its efforts to strengthen micro food-processing businesses through finance, entrepreneurship development, skill training, incubation and market support.

The award was presented by Union Food Processing Industries Minister Chirag Paswan at the PMFME Conclave 2026 in New Delhi. Minhaj Alam, Additional Chief Secretary, Agriculture and Farmers’ Welfare Department, and Suraj S, CEO of the Kerala Bureau of Industrial Promotion (K-BIP), jointly received the award. The two-day conclave on August 24-25 brought together more than 500 stakeholders from government, banking, industry, technical institutions and incubation centres.

Kerala has facilitated loans for 10,175 entrepreneurs through the Industries Department and K-BIP, exceeding the Centre's target of 10,000 enterprises. It has also sanctioned ₹195.04 crore in grant-in-aid subsidy to 7,529 beneficiaries, underscoring the state's strong implementation record.

The state's support extends to Self-Help Groups. ₹19.60 crore in seed capital has been disbursed to 6,297 Kudumbashree members through the State Rural Livelihood Mission, while another ₹3.90 crore has reached 1,060 members through the Urban Livelihood Mission. The scheme provides ₹40,000 seed capital per eligible SHG member for working capital and small tools.

Kerala has also invested in shared processing infrastructure. A Common Incubation Centre was established at the Agri Business Incubator of Kerala Agricultural University, Vellanikkara, Thrissur, at a cost of ₹2.75 crore, supporting processing of rice, fruits, vegetables and spices.

Launched in 2020 under Aatmanirbhar Bharat, PMFME targets India's nearly 25 lakh informal food-processing enterprises, helping them access finance, technology, training, branding and organised markets. Individual units can receive a 35% credit-linked capital subsidy up to ₹10 lakh, while eligible common infrastructure projects can receive 35% subsidy up to ₹3 crore. The scheme also follows the One District One Product approach.

Nationally, PMFME had formalised 59,202 enterprises by December 2025, mobilising ₹17,015.8 crore in investment and generating 5,18,121 direct and indirect jobs. Kerala accounted for 5,139 formalised enterprises. By July 2026, the programme had crossed two lakh credit-linked beneficiaries, mobilising over ₹20,300 crore and generating nearly 11 lakh employment opportunities.

The scheme operates on a 60:40 Centre-State funding ratio. In Kerala, the Department of Industries and Commerce is the nodal department and K-BIP the nodal agency. The state's challenge now is to convert its strong implementation record into commercially sustainable enterprises through better branding, technology, e-commerce and wider market access.

Kerala's award thus highlights an ecosystem-driven approach combining finance, SHGs, incubation, skills and market linkages to strengthen grassroots food enterprises and increase value addition in the state's agricultural economy.