THE Food Processing Industries Ministry is moving a proposal to extend the Pradhan Mantri Formalisation of Micro Food Processing Enterprises (PMFME) scheme for five more years with revised guidelines, including raising the credit-linked capital subsidy ceiling, a senior official said on Friday. In a media briefing, Joint Secretary Devesh Deval said the central scheme, launched in 2020 and currently extended till September 2026, has been successful in modernising micro enterprises, strengthening Self Help Groups (SHGs) and creating common infrastructure and incubation centres. “

 

We have got the extension of the scheme till September 2026. We are also moving a proposal to continue it for the next five years with revised guidelines,” Deval told reporters here. Among the key changes proposed are increasing the credit-linked capital subsidy beyond the existing upper limit of Rs 10 lakh per unit, preferential treatment for women entrepreneurs and enterprises in hilly regions, and a focus on branding and marketing, he said. Currently, the scheme provides a subsidy of up to 35 per cent of the eligible project cost, capped at Rs 10 lakh per micro-enterprise, for individuals or groups setting up or upgrading food processing units. Since its 2020 launch, 1.96 lakh micro enterprises have used the credit subsidy window for projects worth Rs 19,844 crore in total, with the government paying out Rs 5,844 crore in subsidies. Around 65,000 units have been modernised.

 

Deval said the 2-lakh-unit target will be met next month. Bihar leads in the number of beneficiaries, followed by Maharashtra, Uttar Pradesh, Tamil Nadu, and Madhya Pradesh. Processing of cereals, oil and oilseeds, and fruits and vegetables accounts for the bulk of activity. Women-led enterprises make up approximately 40 per cent of all beneficiaries. Under the seed capital component, 4 lakh women have received support totalling Rs 380 crore for working capital and small tools. Of these, 15,000 have graduated to the status of micro enterprises and applied for credit-linked capital subsidies.