PM Formalization of Micro Food Processing Enterprises (PM FME) scheme was launched by Union Minister for Food Processing Industries, Harsimrat Badal Kaur on 29th June 2020 as a part of Atma Nirbhar Abhiyaan to generate employment in the economy. The minister said that the scheme would generate a total investment of Rs 35,000 crore and generate 9 lakh skilled and semi-skilled jobs in the rural. It would provide benefits to over 8 lakh units through access to information, training, better exposure, and formalization.
The Prime Minister in his speech on June 12 had emphasised that it was necessary to overcome this crisis with grit and determination.
PM FME Scheme: Important Details
The scheme will be implemented over five years from 2020-21 to 2024-25. The government has created a fund of Rs. 10000 crore.
The expenditure ratio would be as following:
- Centre: State ratio to be 60:40 for States
- Centre: State ration to be 90:10 between North Eastern and the Himalayan States.
- Centre’s share to be 100% in Union Territories
One District One Product (ODODP) approach will be adopted with a food product being identified from one district The food product could be produced based or cereal-based. ODODP products would be given preferences
Existing food units who want to upgrade will receive credit-linked capital subsidy at the rate of 35%of the eligible project cost with a maximum ceiling of Rs.10 lakh per unit. Seed capital of Rs. 40,000 will be provided to each SHG member for working capital and the purchase of small tools. Investment of capital along the value chain will also be provided credit at the rate of 35%.
NIFTEM and IIFPT, two academic and research institutions under MOFPI along with State Level Technical Institutions selected by the States would be provided support for training of units, product development, appropriate packaging, and machinery for micro-units.
Eligible Crops:
- Fruits eligible under the scheme are Mango, Pomegranate, Jackfruit Litchi, Papaya, Citrus, Banana, Guava, Kiwi, Pineapple,
- Vegetables eligible under the scheme are Brinjal, Capsicum French beans, Carrot, Onion, Bitter Gourd, Potato and Tomato Cauliflower, Chillies (Green), Okra,
Eligible Players
Any Food Processors, FPO/FPC, Co-operative Societies, Individual farmers, Licensed Commission Agent, Exporters, State Marketing/Co-operative Federation, Retailers engaged in processing/ marketing of fruits and vegetables is eligible for the scheme.
The transportation of eligible crops from surplus production cluster to consumption centre; and Hiring of appropriate storage facilities for eligible crops (for a maximum period of 3 months) will be provided 50% subsidy by the government.
