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PMFME

PM Formalisation of Micro Food Processing Enterprises

35% credit-linked capital subsidy up to ₹10 lakh per unit for micro food-processing enterprises, under One District One Product.

What you get

35% credit-linked capital subsidy up to ₹10 lakh per unit · SHG seed capital ₹40,000 per member

Nodal ministry

Ministry of Food Processing Industries

Support type

Loan / Credit

Best suited for

Seed / Early Stage · Growth / Scaling

Typical timeline

Rolling, through the PMFME portal and state nodal agencies

What this scheme actually is

PMFME formalises India's unorganised micro food-processing sector around the One District One Product framework. For a small food brand or processing unit, it is the most accessible capital subsidy in the country: 35% of project cost up to ₹10 lakh, credit-linked, with branding and marketing support and incubation centre access on top.

What the scheme sets out to do

Promote formalisation of unorganised microenterprises in the food processing sector
Establish and utilise incubation centres based on One District One Product
Provide training and capacity building to micro entrepreneurs, SHGs, FPOs and cooperatives

Who can apply

Existing individual microentrepreneurs and micro units
Self-help groups, FPOs, producer cooperatives and individuals
Food startups and micro-enterprises

What you get

Credit-linked capital subsidy at 35% of project cost, capped at ₹10 lakh per unit
FPOs and producer cooperatives receive a 35% grant with credit linkage
SHGs receive seed capital of ₹40,000 per member for working capital and small tools
Branding, marketing and incubation centre support

How to apply, step by step

  1. 1

    Identify your district's ODOP product

    Alignment to the district's One District One Product improves prioritisation materially.

  2. 2

    Get FSSAI licensing at the right tier

    Food businesses cannot formalise without it, and the licence tier depends on turnover and activity. Getting this wrong causes rework.

  3. 3

    Register and apply on the PMFME portal

    Applications are made at pmfme.mofpi.gov.in and routed through the state nodal agency and a lender.

  4. 4

    Get the loan sanctioned — the subsidy is credit-linked

    No bank loan, no subsidy. The DPR must satisfy the lender before the subsidy conversation begins.

  5. 5

    Claim the subsidy post-disbursement

    Subsidy is released after disbursement against documented deployment.

How Company Avenue Advisory helps

What we actually do on a PMFME mandate

FSSAI licensing at the correct tier — Basic, State or Central — before the application
Udyam registration and entity formalisation
DPR and bank application, with follow-up until sanction
Subsidy claim documentation and post-sanction compliance

No consultant can guarantee a sanction — that decision sits with the evaluating committee, bank or incubator. We commit to an honest eligibility view, an application built to the evaluator’s format, filing inside the window and a documented follow-up cadence. That is stated in every engagement letter we sign.

Official sources

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