Currently, the scheme provides a subsidy of up to 35 per cent of the eligible project cost, capped at ₹10 lakh per micro-enterprise, for individuals or groups setting up or upgrading food processing units | Photo Credit: NAGARA GOPAL

The Ministry of Food Processing Industries is looking at moving a proposal which will seek continuing the Pradhan Mantri Formalisation of Micro Food Processing Enterprises (PMFME) scheme for five additional years with revised guidelines.

Speaking to reporters on Friday, Ministry of Food Processing Industries, Joint Secretary, Devesh Deval said the central scheme which was launched in 2020 has currently been extended till September 2026. “ We are now looking to make a proposal for continuation of the scheme for the next five years with revised guidelines. We are looking into proposing some changes including increasing credit-linked subsidy from the current upper limit of ₹10 lakh per unit and more focus on encouraging women entrepreneurs,” he said. The Ministry will also look at proposing more focus on branding and marketing and enterprises in the North-Eastern region, he added.

Currently, the scheme provides a subsidy of up to 35 per cent of the eligible project cost, capped at ₹10 lakh per micro-enterprise, for individuals or groups setting up or upgrading food processing units. The centrally sponsored scheme was designed to bridge the gaps by addressing the challenges faced by micro-enterprises while leveraging the potential of groups and cooperatives to drive upgradation, formalisation, and sustainable growth of the sector, he added.

So far, 1.96 lakh micro food processing enterprises have been supported under the credit linked subsidy component with more than 40 per cent of beneficiaries being women entrepreneurs. Deval said this number is expected to touch 2 lakh units by next month. Seed Capital assistance has also been approved for more than 4 lakh SHG members. “The scheme has also covered 1,72,870 beneficiaries and other stakeholders under the capacity building programme,” an official statement added.

Deval pointed out that around 65,000 units have been modernised. Bihar leads in the number of beneficiaries, followed by Maharashtra, Uttar Pradesh, Tamil Nadu and Madhya Pradesh. Processing of cereals, oil and oilseeds, fruits and vegetables accounts for the bulk of activity, he noted.

Published on May 22, 2026