PMFME Scheme 2026: Subsidy, Eligibility, Loan & How to Apply

Table of Contents

• Overview of the PMFME Scheme
• What is ODOP Under the PMFME Scheme?
• PMFME Scheme: Loan and Subsidy
• What are the Salient Features of the PMFME Scheme?
• Key Benefits of the PMFME Scheme
• Eligibility criteria for the PMFME Scheme
• Documents Required for PMFME
• How to Apply for the PMFME Scheme Online?
  • Step 1: Login to the PMFME portal
  • Step 2: Apply for the scheme
• Start Your Food Business with PMFME Support

Overview of the PMFME Scheme

The PMFME Scheme was launched by the Ministry of Food Processing Industries on 29^th June 2020 under the Atmanirbhar Bharat Abhiyan. It provides various kinds of financial assistance to micro food processing units. This is specifically aimed at unorganized micro food processing units. The purpose of launching the scheme is also to formalize these units and promote local manufacturing.

The scheme has an aggregate of ₹10,000 Crore. The cost sharing ratio between the Centre and the state government is 60:40. For north-eastern and Himalayan states, the cost sharing ratio is 90:10. The project helps:

• Individual micro food processing units
• Farmer Producer Organizations (FPOs)
• Self-help groups (SHGs)
• Cooperative producer societies

What is ODOP Under the PMFME Scheme?

The scheme adopts the One District One Product (ODOP) approach. Every state selects a single food item which is produced extensively in the district. This can be any perishable, extensively grown food item, or even cereal items. Some examples include potatoes, mangoes, tomatoes, pickles, meat, and fisheries. In tribal areas, herbal products such as turmeric, amla, honey, and medicinal plant products are also included under the ODOP approach. Selection of one food item per district helps in bulk procurement, common infrastructure, and marketing of their products.

PMFME Scheme: Loan and Subsidy

This system provides capital subsidy against credit. This implies that you will be taking a loan from any bank or financial institution for your venture, and the government subsidy will be dependent on that loan only. Most news articles sometimes describe this subsidy informally as a loan subsidy of up to ₹10 lakhs. The subsidy covers 35% of the eligible project cost, subject to a maximum of ₹10 lakh per unit.

Example: If the eligible cost of your project is ₹20 lakh, then the subsidy will be ₹7 lakh.

What are the Salient Features of the PMFME Scheme?

• Provides a 35% subsidy to eligible group infrastructure projects under relevant guidelines for establishing shared food processing infrastructure, value chains, incubation centers, storage, and processing facilities. Available to FPOs, FPCs, cooperatives, SHGs, SHG federations, and government agencies, the scheme supports new and proposed projects with financial assistance of up to ₹3 crore.
• Provides a 35% subsidy on eligible project costs, up to ₹10 lakh, for individuals, FPOs, NGOs, SHGs, and cooperatives to establish, modernize, or expand food processing units while reducing investment costs.
• Provides ₹40,000 seed capital per SHG member, up to ₹4 lakh per SHG, for working capital, small tools, and equipment purchases through SHG federations to support micro food processing activities.
• Promotes district-specific food products by improving procurement, marketing, and value chain development, aligning infrastructure support across 713 districts nationwide.
• Provides 50% financial assistance to FPOs, SHGs, and cooperatives for branding and marketing activities, helping improve product visibility, brand promotion, and market expansion.
• Provides food processing and entrepreneurship training, along with business management, technical guidance, and skill development to strengthen enterprise growth and sustainability.

Key Benefits of the PMFME Scheme

• Upgradation of existing units or setting up of new units through subsidies.
• Loans without collateral through banks and non-banking financial companies.
• Financial assistance for modern equipment, packing and storage facilities.
• Assistance to FPOs, SHGs, existing micro enterprises, and cooperatives throughout the value chain.
• Assistance in branding and marketing for retail products.
• Food safety and quality training.
• Creation of local employment opportunities.

Eligibility criteria for the PMFME Scheme

Food units of an individual or partnership:

• You should be above the age of 18 years and a minimum class 8 pass, if required under the applicable eligibility criteria.
• Your food processing unit should be operating and should be verified by a resource person.
• Only one applicant per family (i.e., you, your spouse, and your children).

FPOs, SHGs, and Cooperatives:

• You should be involved in processing of your district's ODOP products for at least 3 years.
• Eligible FPOs, cooperatives, and producer organizations involved in food processing activities can apply subject to scheme guidelines and project eligibility requirements specified by the implementing authority. You should have 10% of the project cost.
• SHG members: You can get seed capital if you are involved in food processing and will be using the money for working capital and minor equipment.
• You are not eligible if you are below 18 years old, haven't completed 8^th standard, and another family member has applied.

Documents Required for PMFME

• Application form with two photographs of passport size.
• ID proof (Aadhaar card, driving license, voter ID, or passport).
• Proof of address or residential proof.
• Income Proof.
• Documents pertaining to business.
• Bank passbook or bank account.
• Active mobile number.
• Project report with details and cost estimates.
• Other documents can be asked by the loan sanctioning authority.

How to Apply for the PMFME Scheme Online?

You can check out the few simple steps to apply online for the PMFME Scheme. However, please check the official portal to learn whether the scheme is open currently or not. Go through the steps below to apply for PMFME Scheme online:

Step 1: Login to the PMFME portal

• Go to the following URL: https://pmfme.mofpi.gov.in/pmfme/#/Login.
• From the upper-right corner of the page, click on 'Login' and choose 'Application Registration (New User)'.
• Enter your name, mobile number, category of beneficiary, address, state, and district and click on 'Register'.

Step 2: Apply for the scheme

• Click on 'Applicant Login' using your user ID and password.
• Choose 'Apply Online'.
• Complete the application form and attach all relevant information and submit.

Alternatively, you can apply through banks or NBFCs associated with the scheme. Approval of the loan can take up to 2–4 weeks or more depending on circumstances. However, the processing time varies by bank, project assessment, documentation and scheme procedures.

Start Your Food Business with PMFME Support

If you wish to start or expand your food processing business, then you can avail a subsidy under the PMFME scheme up to 35% of your eligible project cost, which is limited to ₹10 lakh. There is provision of training, branding, and seed capital as well in the scheme for the members of SHG. Ensure that all the eligibility criteria are satisfied and then submit your documents along with the project report online on the official PMFME website or through the concerned bank.