The Prime Minister Formalization of Micro Food Processing Enterprises (PM FME) scheme was launched to generate 9 lakh employment on 29th June 2020. The scheme was launched by Harsimrat Kaur Badal (Union Food Processing Industries Minister). Earlier on 20th May 2020, the scheme was approved by the Union Cabinet.

The scheme will generate 9,00,000 skilled and semi-skilled employment. Rs 35000 Cr of the total investment will be generated under the scheme. 8,00,000 micro food processing units across the country will be benefited under the scheme.

Aim of the Scheme

The aim of the scheme is to support local unsystematic food processing units in the country. Support in the form of finances, Strengthening capabilities of support systems, increase in revenue targets, in tribal districts focusing on minor produce, etc. Through the scheme, the aim will be for transition of unsystematic food processing units into the formal sector.


The total expenditure of the scheme will be Rs 10,000 crore. The scheme will be implemented over the next 5 years from 2020-21 to 2024-25.

Supplied by way of credit score linked grant of 35% for growth of widespread infrastructure together with widespread processing facility, lab, warehouse, chilly storage, packaging and incubation middle by way of FPOs/SHGs/cooperatives or state owned businesses or non-public enterprise to make use of by micro items within the cluster. Support for advertising and marketing & branding could be supplied to develop manufacturers for micro items and teams with 50% grant at State or regional degree which may benefit enormous variety of micro items in clusters.

The function of indigenous meals processing items, Union Minister mentioned that meals merchandise manufactured by the agricultural entrepreneurs within the villages have an expanded custom of supplying Indian meals merchandise to the indigenous inhabitants.

PM FME Scheme Employment PM FME Scheme Employment