The PM Formalisation of Micro Food Processing Enterprises (PMFME) scheme is the best entry point for small and micro food businesses seeking government support. If you run a spice unit, a pickle or papad business, a bakery, a small dairy or any micro food operation, this scheme can fund a third of your project.
What PMFME offers
PMFME provides a 35% credit-linked capital subsidy on eligible project cost, capped at ₹10 lakh per unit. Beyond individual units, it supports Farmer Producer Organisations (FPOs), Self Help Groups (SHGs) and cooperatives, including seed capital of ₹40,000 per SHG member for working capital and small tools, plus grants for common infrastructure and branding & marketing.
The One District One Product (ODOP) approach
PMFME follows an ODOP framework — each district has identified focus products (for example mango, tomato, millets, spices or dairy). Projects aligned to your district's ODOP get priority, though non-ODOP products are also supported.
Who is eligible
Existing micro food processing units (individual proprietors and partnerships), FPOs, SHGs and producer cooperatives. Applicants generally must be 18+, own or run the enterprise, and be willing to contribute their share of the project cost with the balance funded by a bank loan — because the subsidy is credit-linked.
Documents you will need
Typically: a Detailed Project Report (DPR), Udyam registration, FSSAI licence/registration, GST (where applicable), bank loan sanction, and KYC/land documents. A well-built DPR aligned to PMFME norms dramatically improves approval odds.
How to apply
Applications are filed on the PMFME portal and routed through the State Nodal Agency, often with support from District Resource Persons. The flow: prepare the DPR → apply online → bank appraisal & loan sanction → subsidy approval → disbursement.
Get expert help
We prepare PMFME-ready DPRs, help with registrations, and manage the application to disbursement. Contact Alliance Global Consulting for a free eligibility check.