Archive · 22 Aug 2026
Food Processing Industry Seeks Five-Year PMFME Scheme Extension
The government has a program to help very small food businesses get money to grow.
The program is called PMFME.
It pays a subsidy linked to a business loan, covering 35% of an eligible project.
The program currently supports projects costing up to Rs 3 million.
Business owners must contribute 10% of the project cost.
Officials want the program to continue for five more years.
It has already helped 2.06 lakh businesses, and more than 40% of the beneficiaries are women.
Bihar has the largest number of businesses using the program.
The Ministry of Food Processing Industries has proposed extending the PMFME scheme for five years.
The proposal would increase financing for micro food-processing enterprises and raise the credit-linked capital subsidy ceiling.
The scheme currently offers a 35% credit-linked subsidy on projects costing up to Rs 3 million, with a 10% promoter contribution.
The scheme has supported 2.06 lakh enterprises with Rs 6,000 crore in subsidies against project costs of Rs 20,400 crore.
More than 40% of beneficiaries are women, with Bihar reporting the highest number of beneficiaries.
- Who
- The Ministry of Food Processing Industries, represented by joint secretary Devesh Deval, and micro food-processing enterprises.
- What
- The ministry has proposed a five-year extension of the PMFME scheme, along with higher financing and a larger subsidy ceiling.
- When
- The scheme was launched in FY21 and has been extended until September 30, 2026; the new proposal seeks five additional years.
- Where
- The report identifies Bihar, Maharashtra, Uttar Pradesh, Tamil Nadu, and Madhya Pradesh as leading beneficiary states; the proposal’s submission location is not specified.
- Why
- To provide more financing to micro food-processing enterprises and increase the credit-linked capital subsidy ceiling.
- Scheme
- Pradhan Mantri Formalisation of Micro Food Processing Enterprises (PMFME)
- Current extension
- The scheme is extended until September 30, 2026.
- Proposed extension
- Five additional years.
- Subsidy rate
- 35% credit-linked subsidy.
- Project limit
- Up to Rs 3 million per project.
- Promoter contribution
- 10% of project costs.
- Reported beneficiaries
- 2.06 lakh enterprises, including more than 40% women beneficiaries.