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PM Formalization of Micro Food Processing Enterprises Scheme (PM FME Scheme)

Ministry of Food Processing Industries (MoFPI), in partnership with the States, has launched an all India centrally sponsored “PM Formalization of Micro Food Processing Enterprises Scheme (PM FME Scheme)” for providing _nancial, technical and business support for upgradation of existing micro food processing enterprises. The objectives of the scheme are :

 

(i) Support for capital investment for upgradation and formalization with registration for GST, FSSAI hygiene standards and Udyog Aadhar;

 

(ii) Capacity building through skill training, imparting technical knowledge on food safety,  standards & hygiene and quality improvement;

 

(iii) Hand holding support for preparation of DPR, availing bank loan and upgradation;

 

(iv) Support to Farmer Producer Organizations (FPOs), Self Help Groups (SHGs), producers cooperatives for capital investment, common infrastructure and support branding and marketing.

 

One District One Product

 

The Scheme adopts One District One Product (ODOP) approach to reap bennet of scale in terms of procurement of inputs, availing common services and marketing of products. The States would identify

food product for a district keeping in view the existing clusters and availability of raw material.

 

The ODOP could be a perishable Agri-produce, cereal based product or a food product widely produced in a district and their allied sectors. Illustrative list of such products includes mango, potato, litchi, tomato, tapioca, kinnu, bhujia, petha, papad, pickle, millet based products, _sheries, poultry, meat as well as animal feed among others. Preference would be given to those producing under ODOP approach. However, units producing other products would also be

supported. Support for common infrastructure and branding & marketing would only be given for products under ODOP approach

 

Upgradation of Individual Micro Food Processing Units

 

Individual micro food processing units desirous of upgradation of their unit can avail credit-linked capital subsidy @35% of the eligible project cost with a maximum ceiling of Rs.10 lakh per u n i t. Th e b e n e _ c i a r y contribution should be minimum 10% and the balance should be loan from a Bank.

 

Support to FPOs / SHGs / Cooperatives

 

The scheme would provide support to FPOs / SHGs / Producer Cooperatives for capital investment along the entire value chain with credit linked grant @ 35%.

 

Common Infrastructure

 

Credit linked grant @35% would be provided to FPOs, SHGs, cooperatives, State owned agencies and private entrepreneurs for development of common infrastructure including common processing facility, lab, warehouse, cold storage, packaging and incubation center.

 

Branding and Marketing Support

 

Marketing and branding support would be provided at State or regional level to FPOs/ SHGs/ Cooperatives or an SPV of micro food processing enterprises under the scheme following the ODOP approach for developing common packaging & branding with provision for quality control, standardization and adhering to food safety parameters for consumer retail sale. These organizations would be supported based on DPR prepared by them and recommended by the State Nodal Agency. Support for branding and marketing would be limited to 50% of the total

expenditure.