In a move to strengthen the grassroots food processing ecosystem, the Ministry of Food Processing Industries (MoFPI) has approved 551 micro food processing enterprises under the Pradhan Mantri Formalisation of Micro Food Processing Enterprises (PMFME) Scheme, backed with a credit-linked subsidy of Rs 45.49 crore.
The approvals, part of the government’s broader effort to expand small-scale industrial activity and support rural entrepreneurship, were granted across various locations, including the Ambedkar Nagar district of Uttar Pradesh, where local entrepreneurs will receive financial incentives to set up and scale their processing units. The PMFME Scheme aims to encourage small enterprises involved in processing, preserving and packaging local food products, strengthening farm-to-fork value chains.
MoFPI also provides assistance through other flagship programmes, such as the Pradhan Mantri Kisan SAMPADA Yojana (PMKSY) and the Production Linked Incentive Scheme for Food Processing Industry (PLISFPI), to develop the nation’s food processing infrastructure and formalise the sector. These interventions support the establishment of processing units in rural clusters and designated food parks while making credit more affordable for entrepreneurs.
In addition to direct subsidies, the government continues to facilitate financing via the Food Processing Fund (FPF), a ₹2,000-crore corpus set up with NABARD in 2014–15 to offer affordable loans for food processing projects and allied infrastructure.
Officials say that by nurturing micro and small food processing units, the initiative is expected to stimulate local economies, boost employment, improve food quality and safety, and promote entrepreneurship in rural and semi-urban areas, contributing to India’s broader goals of expanding processed food output and enhancing supply chains nationwide.
Source: F&B News