PMFME SHG Seed Capital
By Ministry of Food Processing Industries (MoFPI)
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Quick Answer
PMFME provides Rs 40,000 of seed capital per SHG member for working capital and small tools in food processing.
- Funding amount
- Up to ₹40,000
- Funding type
- Subsidy
- Application deadline
- Rolling
- Location
- Open to startups registered in India
About this subsidy
Clause 5.3.2(i) of the PM Formalisation of Micro Food Processing Enterprises (PMFME) Scheme guidelines provides seed capital of Rs 40,000 per member of a Self Help Group engaged in food processing.
The money is meant for two specific uses named in the guidelines: working capital and the purchase of small tools. It is aimed at SHG members already running or starting a small food processing activity — grinding, drying, packaging, pickling, snack making — who need a first tranche of operating money and basic equipment rather than a large machinery loan.
Eligibility
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Full eligibility criteria — entity type, stage, sector, founder profile and registration requirements — plus your fit for this program. Sign up to view.
Subsidy providers
The Ministry of Food Processing Industries (MoFPI) is a Government of India ministry based at Panchasheel Bhavan, August Kranti Marg, New Delhi. It runs and funds schemes for the food-processing sector: subsidies and grants for micro units and producer groups, a…
Learn moreBenefits & Funding
- Amount
- Up to ₹40,000
What You Get
Each eligible SHG member engaged in food processing receives Rs 40,000 as seed capital. The guidelines limit its use to working capital and the purchase of small tools, which makes it the practical entry point of the scheme for group-based members who are not yet ready for a credit-linked capital project. Because it is per member, a group with several food-processing members can bring in a meaningful pool of working capital between them.
- Bootstrap friendly
- Yes
Timelines & Process
Applications
Rolling basis
Selection Process
Members are identified through the SHG and its federation under the State Rural Livelihood Mission, verified as engaged in food processing, and seed capital is released member-wise.
Application Process
- 1
Member identification
The SHG and its federation identify members engaged in food processing.
Provider - 2
- 3
How to apply
Four steps from draft to disbursement — one action each.
- 1
See the questions before you start
Download every question this programme's application form asks, so you can prepare your answers offline before opening the portal.
- 2
Submit on the official portal
Use the official application link and verify all details before final submission.
- 3
Follow up
Reach out 5–7 days after submitting to confirm receipt and ask about the review timeline.
Frequently Asked Questions
How much seed capital is given?
Rs 40,000 per member of the Self Help Group.
What can it be used for?
Working capital and the purchase of small tools.
Is it per group or per member?
Per member of the SHG.
Do I need a bank loan for this?
No. Unlike the credit-linked capital subsidy, seed capital is provided under the scheme for working capital and tools.
Who is eligible?
SHG members engaged in food processing under the PMFME scheme.
Sources
Data on this page is compiled from official program and provider references.
News
- 2,906 Loans, ₹191.73 Crore Projects: Himachal Shines in PMFME Performancethenewshimachal.com · 2 months ago
- PMFME scheme achieves two-lakh unit target; likely to be extended beyond September 30 deadlinenewindianexpress.com · 2 months ago
- Centre Releases Rs 34.71 Crore for Jammu Kashmir Under PMFME Schemekashmirlife.net · 2 months ago
Source: Google News aggregated
