India’s food processing industry is well-known around the world for being the world’s largest producer of milk, the second-largest producer of food grains, fruits and vegetables, and the third-largest user and exporter of spices. The government has chosen to further support the micro food processing facilities in the nation with programmes like Make in India and the Atmanirbhar Bharat Abhiyan. The PM Formalisation of Micro Food Processing Enterprises PM FME Scheme was introduced on June 29, 2020, drawing inspiration from the “Vocal for Local” campaign started by the Hon’ble Prime Minister Shri Narendra Modi. Through this programme, farmer-producer organisations, self-help organisations, and producer cooperatives will receive a variety of financial incentives to support their value chain. This article gives you all the information you need about this programme, including how to register, log in, and learn about its features, perks, and eligibility requirements.
About PM FME Scheme
The PM FME Scheme is a government sector programme that supports the nation’s unorganised micro food processing businesses with an investment of INR 10,000 crore. Under the programme, credit-linked subsidies will be provided directly to almost 2 lakh micro food manufacturing facilities. The programme will cost $ 1.3 billion in total, divided over 5 years from 2020–2021 to 2024–2025. By registering micro units with the FSSAI, Udyog Aadhaar, and GST, this system would legitimise micro units. The individual units will receive financial support to modernise their food manufacturing facilities. Other than that, technical knowledge and training will uses to set up shared infrastructure facilities and create skill sets. Additionally, this plan supports branding and marketing. This programme covers farmer-producer organisations, self-help groups, and producer cooperatives. The Ministry of Food Processing Industries is in charge of putting this plan into action.
Also Read: Aatmnirbhar Bharat Rojgar Yojana
Key Highlights of PM FME Scheme
|Government of India
|Name of Scheme
|PM FME Scheme
|To Cover Credit-Linked Subsidy for Micro Food Processing Unit
|Credit-linked subsidies would be provided to 2 lakh micro food processing units
|Food processing must be a focus of the applicant
|Citizen of India
Objective of PM FME Scheme
The PM FME Scheme’s primary goal is to improve the existing FPOs, cooperatives, self-help groups, and micro food processing enterprises’ access to credit. The supply chain will be integrated through this plan by bolstering branding and marketing. 200000 businesses will receive support from the government. Additionally, this plan increases access to shared services including common labs, storage facilities, packaging, marketing, incubation, etc. In addition, this programme will be used for research and training in the food processing industry. This programme also expands access to technical and professional support in order to develop the institutions.
Benefits and Features of PM FME Scheme
- The PM FME programme was launched by the federal government and several state governments.
- Through this programme, credit-linked subsidies will be provided to 2 lakh micro food processing units.
- With the use of the FSSAI registration, Udyog Aadhaar, and GST, this programme would formalise micro units.
- This programme covers farmer-producer organisations, self-help organisations, and producers cooperatives.
- This programme is being implement by the ministry of food processing industries.
- Through this programme, individual units will also receive financial aid for modernising their food processing facilities.
- Other than that, technical expertise and training will be uses to set up common and infrastructure facilities as well as skill development.
- The government has set aside Rs 10,000 crore for a five-year period, from 2020–2021 to 2024–2025.
- Additionally, this programme supports branding and marketing.
- The company must carry out food processing operations.
- The microbusiness must be operational.
- Only one member of each household may benefit from this programme.
- The applicant must be at least 18 years old.
- The applicant must have completed at least the eighth grade.
- Only partnerships or sole proprietorships are eligible to benefit from this plan.
- It is a requirement that the applicant be the Enterprise’s legal owner.
- The business should engage in the district-specific product that has define. Other units can also be into account.
- The business should have incorporate, and it should have at least 10 employees.
- The cost of the project shouldn’t include the cost of the land.
- Including the cost of a ready-built together with a long lease or rental worksheet in the project cost
- The workshed lease rental, which is part of the project cost, should be for a maximum of three years.
- The business owner must be prepare to contribute 10% of the project’s cost and secure a bank loan.
Costs Associated With Implementing the PM FME Scheme
For the purpose of implementing the PM FME Scheme, Rs 10,000 crore will be spent over the course of five years. The costs associates with putting this plan into action will be split 60:40 between the federal government and state governments, 901:0 with Northeastern and Himalayan States, 60:40 with union territories having legislatures, and 100% by the federal government for other union territories. In 2020, this programme will introduce as a component of the Atma Nirbhar Bharat Abhiyan and will follow the one district, one product philosophy. Credit-links subsidies would be offered under this programme at a rate of 35% on eligible product expenses, up to a maximum of Rs 10 lakh.
Parts of the PM FME scheme
- Support for individual and collective microbusinesses
- Help for branding and marketing
- Support for institution strengthening
- Establishing a project management framework for progress
Support For Small Businesses
The government would give credit-linked capital subsidies to the individual micro food processing units under the PM FME plan at a rate of 35% of the cost of the qualified product. The maximum ceiling for this capital subsidy that is connects to credit is Rs. 10 lakh per unit. The beneficiary must provide at least 10% of the project cost; the bank will loan the remaining amount. Through this programme, technical expertise, skill development, and handholding support services will made available to help enhance the capacity of microfood entrepreneurs.
Assistance For Group Category Within the PM FME Scheme
The PM FME plan would provide support for the clusters and organisations such as farmer producer organisations, self-help groups, and producer cooperatives as well as their full value chain. Sorting, grading, storage and processing, packing, marketing, processing of agricultural produce, etc. will all receive help. A grand at a rate of 35% with credit linkage will be for this reason. Additionally, through this programme, training help will offer. In these circumstances, the grant’s maximum amount would be as specified.
Eligibility Criteria For Cooperative/FPO
- It is preferable for the cooperative or farmer-producer organisation to produce in a single district.
- Food processing activities must carry out by the cooperative or FPO.
- The company should have a maximum annual revenue of at least Rs 1 crore.
- The project’s cost shouldn’t be higher than its current turnover.
- The company’s employees must possess all necessary skills and have dealt with products for at least three years.
- To cover 10% of the project cost plus margin money for working capital needs, the cooperative or farmer producer organisation must have adequate internal resources or state government approval.
Support For Self-Help Groups Through The PM FME Program
Many self-help organisations work on projects related to food processing. The self-help organisations will receive financial aid under the PM FME initiative. The following are the specifics of this financial support:-
- Seed Capital: A seed capital at the rate of Rs. 40.000 per member of the self-help group will grants for working capital requirements and the procurement of tools. Priority will be given to self-help organisations that participate in the production of one district, one product. Since it’s possible that not all of the self-help group’s members are active in food processing, seed money will be given at the federation level. This sum will be distributed as a grant. This sum must be made available as a loan to self-help group members by the self-help group federation.
- Financial assistance: will be given to each individual self-help group member participating in this programme at a rate of 35% credit-linked grants. The highest grant amount is Rs. 10 lakh.
- Capital investment: A credit-links grant of 35% will offer at the Federation of Self Help Group level to stimulate capital investment. The maximum amount of this grant will occasionally be impose.
- Self-help groups: will also receive training and handholding support in addition to formal instruction. There are several skilled resources available to the state’s rural livelihood mission. These individuals have agronomic knowledge that will uses for training, unit improvement, handholding support, etc.
Qualification Standards For Seed Money For Self-Help Groups
- This programme is only available to self-help group members who work in the food processing industry.
- The seed money should be used for working capital and the acquisition of modest tools.
- The SHG should work in the food processing industry.
- Before distributing the seed money, the self help group federation is needed to compile the following information regarding each self help group member:
- Raw material sources and produce marketing
- Annual revenue
- Information about the product being process
- other activities that done
- Bank account
- Age proof
- Passport size photograph
- Mobile number
- Aadhar card
- Residence proof
- Incorporation certificate
Also Read: PM Mission LiFE
How to Apply for the PM FME Scheme
- Visit the PM FME scheme’s website first.
- Before you, the home page will load.
- You must select the online registration link on the homepage.
- Before you will be a new page.
- On this new screen, you must select “sign up.”
- A registration form will show up.
- The following details must be entered on this registration form:-
- Type of beneficiary
- Email ID
- Mobile number
- You must now select register.
- Following that, you must Login to the portal.
- Selecting the beneficiary type is required.
- Currently, you must provide your user name and password.
- Following that, you must select “Submit Now” before selecting “Apply Now.”
- A form for applications will appear before you.
- You must first complete this application form with all necessary information before uploading all necessary papers.
- You must now select “submit.”
- This process will allow you to apply for the PM FME Scheme.
How to do Applicant Login
- Go to the PM FME scheme’s Official Website.
- You will see the home page open before you, and you must now click on login.
- Following that, you must select “Applicant Login.”
- The login page will show up.
- You must choose your beneficiary category.
- You must now enter your user ID and password before clicking “submit.”
- This process will allow you to login as an applicant.
Perform MIS Login
- Visit the PM FME scheme’s official website.
- Before you, the home page will load.
- You must select Login from the homepage.
- Following that, you must select MIS login.
- Currently, you must provide your user name and password.
- After that, you must select “submit.”
- This process will allow you to do MIS Login.
A Few Important Details About the PM FME Scheme
- The district resource person will assist microbusinesses with DPR preparation, bank loan applications, training, unit upgrades, obtaining relevant regulatory approvals, hygiene, etc.
- On the official website, you may find information about DRP.
- The beneficiaries can meet DRP at the district industries centre for any formal purpose.
- Beneficiary can get in touch with the district nodal official if there isn’t a DRP.
- The following businesses may sign up for shared infrastructure:-
- Partnership firm
- Private limited company
- Public limited company
- Cooperative society
- Limited liability partnership
- The applicant must have existing infrastructure in order to profit from the programme.
- State-level technical institutions will offer training under this programme.
- The beneficiary must make timely EMI payments over the following three years.
- After three years, if the loan category is still standard, the beneficiary’s bank account will be credited with the subsidy amount.
- For scheduled caste, scheduled tribe, and the North Eastern region, special allocations will be granted.
- The nodal bank will be chosen at the national level for the distribution of subsidies.
- Address-Panchsheel Bhawan, August Kranti Marg, Khelgaon, New Delhi-110049
- Phone: 011-26406500, +91 1302281089 , +91-8168001500