All schemes
Subsidy Food Processing Industries

PM FME — Micro Food Enterprises

Up to ₹10L credit-linked capital subsidy for food processing

Maximum benefit
₹10 L
Typical processing
60–90 days from application submission to bank sanction; subsidy released after project completion (typically 6–12 months from sanction)
Apply on official portal

About this scheme

Pradhan Mantri Formalisation of Micro Food Enterprises (PM FME) is a Centrally Sponsored Scheme under the Ministry of Food Processing Industries with a total outlay of Rs. 10,000 crore over 5 years (FY2021-FY2025, extended). It targets unorganised micro food processing units to formalise operations, upgrade infrastructure, and gain access to credit, branding, and markets. Each unit can avail a 35% credit-linked capital subsidy up to Rs. 10 lakh.

What you get

  • Capital subsidy: 35% of project cost, max Rs. 10 lakh per unit
  • Branding & marketing support: 50% subsidy (max Rs. 5 lakh) for branding, packaging, GI registration
  • Seed capital for SHGs: Rs. 4 lakh per SHG @ Rs. 40,000 per member for working capital
  • Common infrastructure: cluster-level common processing facilities funded up to Rs. 10 crore
  • Hand-holding support: District Resource Person (DRP) assists with DPR, license, and bank loan
  • Capacity building: free training programmes on food safety, packaging, marketing
  • FSSAI registration assistance and food safety certification subsidy

Who qualifies

Existing or new micro food processing units (proprietorship, partnership, FPO/SHG, cooperative, or private limited) with project cost up to Rs. 35 lakh (so 35% subsidy ceiling is Rs. 10 lakh + bank loan funds the rest). One-District-One-Product (ODOP) approach — the district's designated product receives priority. Promoter must contribute at least 10% of project cost as margin money. Applicant should be 18+ years, have basic literacy (or working spouse with literacy), and ownership/lease rights for the unit premises.

Industries (NIC divisions)
Food processingBeverages

All business types qualify.

Available across India (central scheme).

How to apply

  1. 1Visit pmfme.mofpi.gov.in and register as individual/SHG/FPO/Co-operative
  2. 2Identify your district's ODOP product or apply for non-ODOP product (lower priority)
  3. 3Contact the assigned District Resource Person (DRP) for DPR preparation
  4. 4Submit application with DPR, FSSAI registration (or in-process), Udyam registration, PAN, Aadhaar
  5. 5Apply for bank loan with any participating lender (SBI, BoB, PNB, regional banks, NBFCs)
  6. 6Bank sanction → subsidy claim filed with State Nodal Agency → subsidy credited to bank loan account upon project completion
  7. 7Maintain operations for 3 years (lock-in) to retain subsidy

Key terms and conditions

  • 35% subsidy as back-end credit — credited to your loan account after project completion verification
  • 3-year operational lock-in — closing the unit within 3 years requires repayment of subsidy
  • Promoter's 10% margin contribution is mandatory and cannot be financed
  • Bank loan terms (interest rate, tenure) are per the lender's standard MSME policy
  • Only credit-linked applications qualify — pure self-financed projects do not get subsidy
  • Annual progress report to MoFPI required for 3 years post-completion

What disqualifies you

  • Project cost above Rs. 35 lakh is not eligible (35% × 35 lakh = max Rs. 10 lakh subsidy cap)
  • Non-food processing units (e.g., consumer goods, textiles) excluded
  • Pure trading/retail of food products without processing/value addition is excluded
  • Applicants in default to banks/NBFCs are ineligible
  • Liquor/tobacco/non-vegetarian processing has specific carve-outs — check state guidelines
  • Same applicant cannot get subsidy for more than one unit

Documents typically required

  • Project report
  • PAN + Aadhaar
  • Bank approval letter
  • FSSAI registration
  • Udyam certificate

Frequently asked questions

Q. What if my district's ODOP product is not what I want to process?
You can still apply for a non-ODOP product. The subsidy ceiling is the same, but ODOP applications get priority during selection.
Q. Can I apply for a brand-new unit, not an existing one?
Yes — new units are eligible. You need a clear DPR, land/lease document, and FSSAI registration (or proof of having applied).
Q. When does the 35% subsidy actually reach my account?
It is back-end — credited to your bank loan account after the State Nodal Agency verifies project completion. The bank then reduces your principal by that amount.
Q. What if my project cost is Rs. 15 lakh — how much subsidy do I get?
35% of Rs. 15 lakh = Rs. 5.25 lakh. The Rs. 10 lakh ceiling only kicks in when 35% would exceed it (i.e., project cost > Rs. 28.57 lakh).

The content above is compiled from public information published by the scheme authority. Eligibility, benefits, and procedures are subject to change. Confirm details directly with the official portal before applying. BharatSeal does not process scheme applications.