PMFME Scheme 2026: Get 35% Subsidy up to ₹10 Lakh for Food Processing Units
PM Formalisation of Micro Food Processing Enterprises Scheme
Centrally Sponsored Scheme providing financial, technical and business support for setting up new and upgrading existing micro food processing enterprises. Eligible individual units can receive a 35% credit-linked capital subsidy on eligible project cost, subject to a maximum subsidy of ₹10 Lakh per unit.
Who Can Apply?
Verified criteria and borrower eligibility guidelines set by the Government of India.
New & Existing Micro Units
Eligible new micro food processing enterprises and existing units seeking expansion, formalisation or technology upgradation can be considered under PMFME.
Eligible Applicants
Eligible applicants may include individuals, proprietorship firms, partnership firms, FPOs, NGOs, cooperatives, SHGs and private limited companies, subject to applicable scheme conditions.
Age Criteria
Individual applicants should be above 18 years of age. Current modified guidelines do not prescribe a minimum educational qualification for individual applicants.
ODOP & Non-ODOP
Enterprises linked to the district's One District One Product are preferred, but eligible non-ODOP food processing proposals may also be considered under the modified guidelines.
Beneficiary Contribution
The beneficiary must contribute a minimum of 10% of the project cost, while the balance eligible funding is generally financed through a bank loan.
Food Processing Activity
The proposed enterprise must undertake an eligible food processing activity and comply with applicable PMFME exclusions, food safety and statutory requirements.
Key Features
Core benefits, guarantees, and subsidy structures under this flagship program.
35% Credit-Linked Capital Subsidy
Eligible individual micro food processing units can receive 35% subsidy on eligible project cost, subject to a maximum ceiling of ₹10 Lakh per unit.
New & Existing Units Supported
The modified PMFME guidelines permit support for setting up eligible new micro food processing units as well as expansion or upgradation of existing enterprises.
Common Infrastructure Support
Eligible groups and organizations can receive 35% credit-linked capital subsidy for approved common infrastructure projects, with support up to ₹3 Crore under the applicable component.
Seed Capital for SHGs
Eligible SHG members engaged in food processing can receive seed capital of up to ₹40,000 per member for working capital and purchase of small tools, subject to applicable scheme limits.
Marketing & Branding Support
Eligible groups of FPOs, SHGs, cooperatives and SPVs can receive up to 50% financial assistance for approved branding and marketing activities.
Capacity Building & Handholding
PMFME supports entrepreneurship training, food safety compliance, packaging, bookkeeping, marketing and other business formalisation requirements.
Scheme Benefits
Application Process
Check Activity & Eligibility
Verify that the proposed food processing activity and applicant structure meet PMFME eligibility conditions and check the applicable ODOP product for the district.
Prepare Project Report
Prepare a bankable project report covering machinery, eligible project cost, technical civil work, production capacity, raw materials, sales projections and funding requirement.
Submit PMFME Application
Submit the application through the prescribed PMFME application mechanism with applicant, enterprise, project and supporting documentation while the applicable application window remains available.
Bank Appraisal & Sanction
The lending bank assesses project viability, applicant contribution, repayment capacity and other credit parameters before sanctioning the eligible loan.
Subsidy Processing
After fulfilment of the applicable scheme and loan conditions, the credit-linked capital subsidy is processed through the prescribed PMFME and banking mechanism.
Documents Required
Keep the following paperwork ready for instant verification and fast processing.
Frequently Asked Questions
Explore 35% PMFME Subsidy up to ₹10 Lakh for Your Food Processing Business
Get support with PMFME eligibility assessment, project report preparation, documentation and bank-linked subsidy application.