PMFME Scheme Completes One Year
- The centrally sponsored Pradhan Mantri Formalisation of Micro food processing Enterprises (PMFME) Scheme, launched under the Aatmanirbhar Bharat Abhiyan, marks the completion of its one year.
- It aims for providing financial, technical and business support for upgradation of existing micro food processing enterprises.
PM Formalization of Micro Food Processing Enterprises Scheme:
- The Ministry of Food Processing Industries (MoFPI) has launched the PM Formalization of Micro Food Processing Enterprises (PM FME) scheme as a part of ‘Atmanirbhar Bharat Abhiyan’.
- Launched on 29th June 2020, the PMFME Scheme is currently being implemented in 35 States and Union Territories.
- Duration:
- It will be implemented over a period of five years from 2020-21 to 2024-25.
- Nodal Ministry:
- Ministry of Food Processing Industries (MoFPI).
- Funding Details:
- It is a centrally sponsored scheme.
- The expenditure under the scheme would be shared in 60:40 ratio between Central and State Governments, in 90:10 ratio with North Eastern and the Himalayan States, 60:40 ratio with UTs with the legislature and 100% by Centre for other UTs.
- The Union Bank of India is the Nodal Bank of the scheme and MoUs with 11 banks as official lending partners are signed for the PMFME Scheme.
Key Features of the PMFME Scheme:
One District One Product (ODOP) :
- In this, the states identify food products for districts keeping in view the existing clusters and availability of raw material.
Other Focus Areas:
- Waste to wealth products, minor forest products and Aspirational Districts.
- Capacity building and research:
- Academic and research institutions under MoFPI along with State Level Technical Institutions would be provided support for training of units, product development, appropriate packaging and machinery for micro-units.
Financial Support:
- Upgradation of Individual Micro Food Processing Units: Existing individual micro food processing units desirous of upgrading their units can avail credit-linked capital subsidy at 35% of the eligible project cost with a maximum ceiling of Rs.10 lakh per unit.
- Seed Capital to SHG: Initial funding of Rs. 40,000- per Self Help Group (SHG) member would be provided for working capital and purchase of small tools.
Other Schemes Related to Food Processing:
- Production Linked Incentive Scheme for Food Processing Industry (PLISFPI):
- It aims to give companies incentives on incremental sales from products manufactured in domestic units.
- Mega Food Park Scheme:
- Mega Food Parks create modern infrastructure facilities for food processing along the value chain from farm to market with strong forward and backward linkages through a cluster-based approach.
Challenges:
- The unorganised food processing sector faces a number of challenges which limit their performance and their growth.
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The challenges include lack of access to modern technology & equipment, training, access to institutional credit, lack of basic awareness on quality control of products; and lack of branding & marketing skills etc.
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PM Formalization of Micro Food Processing Enterprises Scheme is designed to address these challenges, & the scheme envisions to directly assist the 2,00,000 micro food processing units for providing financial, technical, and business support for the up-gradation of existing micro food processing enterprises.
Milestones achieved so far:
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Under the One District One Product (ODOP) component of the PMFME Scheme, the Ministry of Food Processing Industries approved ODOP for 707 districts for 35 States and UTs, including 137 unique products as per the recommendations received by States/UTs.
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Under the Capacity Building component of the PMFME Scheme:
- The National Institute of Food Technology Entrepreneurship and Management (NIFTEM) and the Indian Institute of Food Processing Technology (IIFPT) have been performing a key role in providing training and research support to selected enterprises/groups/clusters in partnership with the State Level Technical Institutions.
- The training of 371 Master Trainers has been conducted under the Entrepreneurship Development Programme (EDP) & various food domains.
- Under the scheme, 54 Common Incubation Centres have been approved in the 17 States and UTs.
- Marketing and Branding:
- Under the scheme, MoUs have been signed with NAFED and TRIFED to take up the marketing and branding support for 10 products each.