- Pradhan Mantri Micro Food Industry Up-gradation Scheme provides up to 35% subsidy on project costs to boost rural food processing businesses.
- Eligible units include flour mills, oil pressing, rice dehusking, bakery, dairy, jam, pickle, and papad industries, especially in rural areas.
- Applicants can apply online on the official PMFME website or seek assistance from the district horticulture department and designated resource persons.
Rural entrepreneurship is gaining strong support through Pradhan Mantri Micro Food Industry Upgradation Scheme (PMFME), aimed at promoting micro food processing units in villages. The scheme encourages youth by providing financial assistance, technical help, and marketing support to start or upgrade units related to food processing including flour milling, oil extraction, rice processing, bakery, dairy, jam and jelly production, pickle making, and papad industries.
Benefits and Subsidy Details under Pradhan Mantri Micro Food Industry Upgradation Scheme
Participants in PMFME can avail a credit-linked capital subsidy of up to 35% of the project cost. For example, if the total investment in a unit is ₹1,00,000, the government reimburses ₹35,000 as subsidy. The maximum subsidy amount per unit can go up to ₹10 lakh. This substantial financial support helps rural entrepreneurs reduce upfront costs and set up sustainable food processing industries.
Installing solar-powered machinery further increases benefits by reducing electricity expenses. Solar systems can power flour mills, oil pressing machines, rice dehusking units, and even submersible pumps, potentially bringing electricity bills to zero for these units, thus lowering operational costs.
How to Apply and Receive Support for PMFME Scheme
Interested rural entrepreneurs can apply online through the official PMFME website. For personalized guidance, applicants may visit the district horticulture department in their area, where specialists known as District Resource Persons (DRP) assist with the entire application process.
After online registration, applicants receive contact details of the District Resource Person via email. This resource person helps in:
- Acquiring necessary licenses such as FSSAI license and Udyog Aadhaar registration.
- Preparing a project report required by banks.
- Submitting machinery quotations and loan documents to the nearest bank branch.
Banks evaluate the submissions and process the loan for establishing the unit. This comprehensive support from government and banking institutions simplifies setting up a food processing enterprise in rural areas.