PM Formalisation of Micro food processing Enterprises (PMFME) Scheme
The unorganized food processing industry in India faces challenges that limit its development and weakens performance.
PM Formalisation of Micro food processing Enterprises (PMFME) Scheme
The unorganized food processing industry in India faces challenges that limit its development and weakens performance.
The idea behind the PM FME scheme is to bring unorganized micro food enterprises into an organized framework given that there are approximately 25 lakhs unorganized food processing units; these units contribute to 74 percent of employment in the food processing sector, and 66 percent of such units are located in rural areas.
These challenges include lack of productivity and innovation due to limited skills and access to modern technology and machinery for production and packaging, poor quality and food safety control systems, including lack of essential awareness of good hygienic and manufacturing practices, lack of branding and marketing skills and inability to integrate with the supply chains, etc. and capital deficiency and low bank credit.
Unorganized micro food processing units need intensive handholding support for skill training, entrepreneurship, technology, credit, and marketing, across the value chain, necessitating active participation of the state government for better outreach. In the last decade, Central and State Governments have made intensive efforts to organize farmers in Food Processing Organisations (FPOs) and women’s Self Help Groups (SHGs). While these have seen success, few Government schemes support FPOs and SHGs to make investments and upscale their operations.
Under this context, the Scheme aims to enhance the competitiveness of existing individual micro-enterprises in the unorganized segment of the food processing industry and promote formalization of the sector, and support Farmer Producer Organizations, Self Help Groups, and Producers Cooperatives along their entire value chain.
The PIP should be placed before the Inter-Ministerial Empowered Committee for approval. The State Level Approval Committee should recommend the PIP to MoFPI. MoFPI should approve the PIP by 31st March of the previous Financial year. In the year 2020-21, PIPs should be sent by the States to MoFPI for approval by September 30, 2020.
Under the capacity building component of the PM-FME scheme, training of the Master Trainers would be delivered through online mode, classroom lecture and demonstration, and self-paced online learning material.NIFTEM and IIFPT are playing a key role by providing training and research support to selected enterprises/groups/clusters in partnership with State Level Technical Institutions.
About the PM-FME Scheme
- Pradhan Mantri Formalisation of Micro food processing Enterprises (PM-FME) Scheme is a centrally sponsored scheme launched under the Aatmanirbhar Bharat Abhiyan.
- The Scheme adopts the One District One Product (ODOP) approach to reap the benefit of scale in terms of procurement of inputs, availing common services, and marketing of products.
- The scheme would provide support to FPOs/SHGs/Producer Cooperatives for capital investment along the entire value chain with the credit-linked grants at 35%.
Objective
- The scheme aims to enhance the competitiveness of existing individual micro-enterprises in the unorganized segment of the food processing industry.
- It also aims to promote the formalization of the sector and provide support to Farmer Producer Organizations, Self Help Groups, and Producers Cooperatives along their entire value chain.
- The scheme envisions directly assisting the 2 Lakh micro food processing units over a period of five years from 2020-21 to 2024-25.
Highlights of the objectives are:
- Support for capital investment for up-gradation and formalization with registration for GST, FSSAI hygiene standards, and Udyog Aadhar.
- Capacity building through skill training, imparting technical knowledge on food safety, standards & hygiene, and quality improvement.
- Handholding support for the preparation of DPR, availing bank loans, and Upgradation.
- Support to Farmer Producer Organizations (FPOs), Self Help Groups (SHGs), producers’ cooperatives for capital investment, common infrastructure, and support branding and marketing.
- The Food Processing Industry in India is known globally for being the largest producer, consumer, and exporter of spices, the second-largest producer of food grains, fruits, and vegetables, and the largest producer of milk in the world.
- With initiatives like Make in India and the Atmanirbhar Bharat Abhiyan, the government has decided to further give a boost to the micro food processing units in the country. Taking inspiration from the “Vocal for Local” campaign initiated by the Hon’ble Prime Minister Shri Narendra Modi, the PM Formalization of Micro Food Processing Enterprises (PM FME) Scheme was launched on 29th June 2020.
The PM FME scheme is a central sector scheme with an outlay of INR 10,000 cr to support the unorganized micro food processing units in the country. The objectives of the scheme are:
- Formalization of micro food processing units
- Financial assistance to individuals for up-gradation of units
- Training and technical knowledge
- Financial assistance to groups for the common infrastructure
- Branding and marketing support
- Support and assistance to avail loans and prepare detailed project reports (DPRs)
- The PM FME scheme would give emphasis to units and groups following the ODOP approach. Various states in the country will be required to identify one product per district based on existing clusters and the availability of raw materials. Assistance in the form of common infrastructure facilities and branding & marketing support will be preferably given to micro food processing enterprises following the ODOP approach. However, other existing units would also be supported.
The Delhi State Industrial and Infrastructure Development Corporation (DSIIDC) has advertised for recruiting District Resource Persons from each of the 11 Districts’ in Delhi under the “Prime Minister Formalization of Micro Food Processing Enterprises (PM FME)” scheme. The Industries Department (Government of National Capital Territory of Delhi) is the State Nodal department for implementing the PM FME.
Union Minister for Food Processing Industries Shri Narendra Singh Tomar in the presence of Shri Rameswar Teli, MoS, FPI had virtually inaugurated in November last year a capacity-building component of the Pradhan Mantri Formalisation of Micro food processing Enterprises scheme (PM-FME Scheme) and launched the GIS One District One Product (ODOP) digital map of India.
Under the PM-FME scheme, capacity building is an important component. The scheme envisages imparting training to food processing entrepreneurs, various groups, viz., SHGs / FPOs / Co-operatives, workers, and other stakeholders associated with the implementation of the scheme.
The training of Master Trainers is expected to benefit nearly 8 Lakhs beneficiaries from micro-enterprises including members of Farmer Producer Organizations, Self-Help Groups, Cooperatives, Tribal communities, and others. The digital ODOP map provides detailed information about ODOP products to all stakeholders.
Under the capacity building component of the PM-FME scheme, training of the Master Trainers would be delivered through online mode, classroom lecture and demonstration, and self-paced online learning material. NIFTEM and IIFPT are playing a key role by providing training and research support to selected enterprises/groups/clusters in partnership with State Level Technical Institutions. The Master Trainers will train the District Level Trainers, who will train the beneficiaries. The current training is based on Fruit and Vegetable processing & EDP. For this purpose, subject experts from various national-level reputed institutions are holding various sessions. The assessment and certification of the training program under the capacity building will be provided by FICSI. The capacity building component was launched yesterday.
Under the PM-FME scheme, states have identified the food products of districts, keeping in view the availability of existing clusters and raw materials. The GIS ODOP digital map of India provides details of ODOP products of all the states and facilitates the stakeholders. The digital map also has indicators for tribal, SC, ST, and aspirational districts. It will enable stakeholders to make concerted efforts for its value chain development.
Launched under the Aatmanirbhar Bharat Abhiyan, the Pradhan Mantri Formalisation of Micro food processing Enterprises (PM-FME) Scheme is a centrally sponsored scheme that aims to enhance the competitiveness of existing individual micro-enterprises in the unorganized segment of the food processing industry and promote formalization of the sector and provide support to Farmer Producer Organizations, Self Help Groups, and Producers Cooperatives along their entire value chain. With an outlay of Rs. 10,000 crore over a period of five years from 2020-21 to 2024-25, the scheme envisions to directly assist the 2,00,000 micro food processing units by providing financial, technical, and business support for the up-gradation of existing micro food processing enterprises.
Minister for Food Processing Industries Harsimrat Kaur Badal has launched the PM Formalization of Micro Food Processing Enterprises (PM FME) scheme as a part of “Atmanirbhar Bharat Abhiyan”, in the presence of Minister of State for Food Processing Industries Rameswar Teli. The minister said that the scheme would generate a total investment of Rs 35,000 crore and generate 9 lakh skilled and semi-skilled employment and benefit 8 lakh units through access to information, training, better exposure, and formalization. The guidelines of the scheme were released on the occasion.
| Name Of The Scheme | PM FME Scheme |
| Launched By | Government Of India |
| Beneficiary | Citizens Of India |
| Objective | To Cover Micro Food Processing Unit With Credit Linked Subsidy |
| Official Website | Click Here |
| Year | 2022 |
