India reveals $12 million PMFME support for micro food processors
India’s Ministry of Food Processing Industries (MoFPI) has provided figures for a centrally sponsored scheme for micro food processing enterprises called PMFME that it first implemented in the financial year 2020/21 to run for five years until 2024/25
The PMFME is designed to provide financial, technical and business support for setting up and/or upgrading micro food processors around the country in order to boost local and regional economies.
So far, there has been an outlay of one billion Indian rupees – US $12.14 million – with just over 27,000 loans sanctioned under a credit-linked subsidy component of the scheme. Of the total, almost 5,900 loans have been made in the state of Maharashtra, followed by Tamil Nadu (3,552), and Bihar (2,345). Businesses in 34 states or union territories have made claims so far out of 36.
Formalising the small food processing sector
As well as addressing the challenges faced by these micro enterprises during Covid times, the scheme aims to enhance the competitiveness of new and existing individual food processing enterprises in the so-called “unorganised segment” of the industry and promote some type of formalisation of the sector.
For interested parties, the assistance available through PMFME includes credit-linked capital subsidies, at around 35% of an eligible project cost, as well as seed capital, support for common infrastructure, branding and marketing support with grants of up to 50%.
The scheme also envisages training for entrepreneurship development programmes to meet the requirement of the food processing industry and product-specific upskilling. In a statement, MoFPI said: “Capacity building and training are critical components in technical upgradation and formalisation of micro food processing enterprises.”