PMFME Scheme Crosses 2 Lakh Beneficiaries, Boosts Rural Food Enterprises

In a major boost to India's micro food processing sector, the Pradhan Mantri Formalisation of Micro Food Processing Enterprises (PMFME) Scheme has crossed the landmark of over two lakh credit-linked beneficiaries , reflecting the government's sustained push to formalise small food businesses, generate rural employment and strengthen value addition in agriculture. Celebrating the milestone at a special event in the national capital, Union Minister for Food Processing Industries Chirag Paswan said the achievement marks a new chapter in India's food processing growth story and reinforces the vision of Aatmanirbhar Bharat and Viksit Bharat @2047 .

Launched in June 2020 under the Aatmanirbhar Bharat Abhiyan , the PMFME Scheme aims to transform nearly 25 lakh unorganised micro food processing enterprises , of which around 66% are located in rural areas and nearly 80% are family-owned businesses . The scheme offers end-to-end support , including 35% credit-linked capital subsidy of up to ₹10 lakh , entrepreneurship training, technology upgradation, branding, packaging, marketing assistance and market linkages, helping small enterprises become competitive and financially sustainable.

According to the Ministry of Food Processing Industries (MoFPI) , the scheme has leveraged over ₹20,300 crore in project investments while achieving its original target of supporting two lakh credit-linked enterprises . The programme has also generated nearly 11 lakh direct and indirect employment opportunities , highlighting its growing contribution to rural industrialisation and MSME development.

The impact has been particularly significant in promoting inclusive entrepreneurship. Nearly 90% of beneficiaries are first-generation entrepreneurs , while 44% are women entrepreneurs , underscoring the Centre's emphasis on women-led development . In addition, more than 75,000 enterprises have entered the formal economy through registrations under Udyam, Udyam Assist, FSSAI and GST , enabling easier access to institutional finance, organised retail markets and government procurement.

During the event, Joint Secretary Devesh Deval announced a nationwide multimedia awareness campaign , stating that PMFME is transforming livelihoods through comprehensive financial and technical support. MoFPI Secretary A.P. Das Joshi described the milestone as evidence of a stronger ecosystem for the micro food processing sector, highlighting the role of District Resource Persons (DRPs) in taking digital services and ease of doing business to the grassroots.

A key pillar of the scheme is the One District One Product (ODOP) initiative, which promotes district-specific food products and strengthens local value chains. The programme currently supports 40 common brands covering nearly 200 products , including Makhana, millets, spices, mango-based products and several GI-tagged products , helping improve branding, processing and market access for local producers.

Highlighting state-wise performance, Chirag Paswan commended Bihar, Maharashtra, Uttar Pradesh, Tamil Nadu and Madhya Pradesh for leading implementation. Official data show that Bihar recorded the highest number of credit-linked loan sanctions during FY2024-25 with 10,273 approvals , followed by Maharashtra (7,546) , Uttar Pradesh (7,449) , Madhya Pradesh (5,103) and Tamil Nadu (3,587) . Other states registering significant progress include Kerala (3,116) , Karnataka (2,329) , Jharkhand (1,851) , Assam (1,769) , Andhra Pradesh (1,667) , Telangana (1,136) , Odisha (731) , Jammu & Kashmir (682) , Punjab (525) , Rajasthan (513) and Himachal Pradesh (496) . Uttar Pradesh , in particular, has emerged as one of the strongest performers by integrating PMFME with its successful ODOP programme .

The Ministry also highlighted the scheme's broader institutional support. More than 4.18 lakh Self-Help Group (SHG) members have benefited from Seed Capital Assistance , while 80 Common Incubation Centres have been approved across 27 States and Union Territories , with 32 already operational . These centres provide entrepreneurs with access to modern food processing equipment, product development, quality testing, packaging technologies and business mentoring.

Capacity building has remained another key focus area. Over 1.76 lakh beneficiaries have undergone training under the scheme, of whom 77% are women . Under the Seed Capital component, Telangana leads the country with support extended to 14,379 SHG members , followed by Tamil Nadu (13,838) , Assam (13,136) , Maharashtra (9,455) , Andhra Pradesh (9,032) , Madhya Pradesh (7,049) , Karnataka (6,572) , Uttarakhand (6,495) , Bihar (5,027) and Odisha (4,834) .

The event concluded with Inderjeet Singh from Ranchi, Jharkhand , being felicitated as the scheme's two lakhth credit-linked beneficiary and receiving his loan sanction letter from the Union Minister. The achievement underscores the government's commitment to building a modern, competitive and formal food processing ecosystem that enhances farmers' incomes, promotes entrepreneurship and drives sustainable economic growth across rural India.