The PM Formalisation of Micro Food Processing Enterprises (PMFME) scheme offers a 35% credit-linked capital subsidy (maximum ₹10 lakh) to micro food-processing units for upgrading or setting up facilities, following the One District One Product (ODOP) approach.

Individual micro food-processing enterprises (existing or new), Farmer Producer Organisations (FPOs), Self Help Groups (SHGs), cooperatives, and producer groups. Priority is given to ODOP products of the district.

What is the maximum subsidy?

Individual units can receive up to ₹10 lakh (35% of eligible project cost) as a capital subsidy. SHGs can additionally get a branding and marketing grant of up to ₹50,000.

What does credit-linked mean?

The subsidy is credit-linked — you first need a term loan sanctioned by a bank or NBFC, and the 35% subsidy is then applied against your bank loan, reducing your outstanding principal.

No equity is taken. The benefit is a non-repayable government subsidy linked to your bank loan for capital investment.

Apply on the PMFME portal at pmfme.mofpi.gov.in. You will need Udyam Registration, an ODOP-aligned project proposal, and a bank sanction letter. District Resource Persons (DRPs) provide free handholding support.

PMFME — PM Formalisation of Micro Food Processing Enterprises

By Ministry of Food Processing Industries (MoFPI)

Up to ₹10LRolling Applications

Quick Answer

35% capital subsidy up to ₹10 lakh for micro food processing units under ODOP

Funding amount: Up to ₹10 Lakhs
Funding type: Subsidy
Provider: Ministry of Food Processing Industries (MoFPI)
Application deadline: Rolling
Location: Open to startups registered in India

Subsidy providers

Provider

Ministry of Food Processing Industries (MoFPI)

New Delhi · Delhi · India

Application Process

1
Obtain free Udyam Registration at udyamregistration.gov.in.
Obtain free Udyam Registration at udyamregistration.gov.in.
You
2
3
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6

How to apply

Four steps from draft to disbursement — one action each.

1
Submit on the official portal
Use the official application link and verify all details before final submission.
2
Follow up
Reach out 5–7 days after submitting to confirm receipt and ask about the review timeline.

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PMFME — PM Formalisation of Micro Food Processing Enterprises

PMFME — PM Formalisation of Micro Food Processing Enterprises

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