Home Agriculture PMFME Boosts Micro Food Process

PMFME Boosts Micro Food Process

Bhubaneswar: Odisha has turned out to be a Pioneer State for implementing Pradhan Mantri Formalization of Micro Food Processing Enterprises (PMFME) Scheme.

Recent Review reveals that States like Odisha and others found out to be leading in availing Seed Capital for Self Help Group (SHG)s

Ministry of Food Processing Industries (MoFPI) and Deendayal Antyodaya Yojana – National Rural Livelihood Mission (DAY-NRLM) of the Ministry of Rural Development (MoRD) agreed to work together on implementation of PM-FME to support Self Help Group (SHG) entrepreneurs in food processing. 

Of all the components of the scheme, both Ministries decided to work closely on the component of providing seed capital support to SHG members.

This involves working capital and purchase of small tools with the maximum permissible amount of support as Rs. 40,000 per SHG Member based on their existing business turnover and requirement.

During the Financial Year 2020-21 a total 17427 beneficiaries were scrutinized and recommended for seed capital support of Rs. 51.85 crore. 

The States of Odisha, Andhra Pradesh, Arunachal Pradesh, Assam, Chhattisgarh, Maharashtra, Mizoram, and Telangana have been pioneer and contributed to over 83 Percent of total beneficiaries and 80Percent of the Total Fund demand in these recommendations.

Ministry of Food Processing Industries (MoFPI) launched an all India “Centrally Sponsored Pradhan Mantri Formalization of Micro Food Processing Enterprises (PM FME) Scheme” to be implemented over a period of five years from 2020-21 to 2024-25 with an outlay of Rs 10,000 crores.

So far, an amount of Rs.29.01 Crore has been approved towards the seed capital support for 10314 beneficiaries covering 6694 enterprises from the States of Odisha, Andhra Pradesh, Chhattisgarh, Goa, Gujarat, Haryana, HP, Karnataka, Madhya Pradesh, Maharashtra, Meghalaya, Rajasthan, Sikkim, Telangana, Tripura, Uttar Pradesh. 

The concerned teams of both the Ministries at National level worked together in formalizing the operational framework for the scheme, the Guidelines, joint advisories, training and awareness campaigns etc. to facilitate the implementation of this component.

Convergence between various schemes of the Ministries has been one of the key agendas, government is trying to pursue, so that resource utilization is optimized and benefits to the masses are maximized. 

With a view to provide financial, technical and business support for up-gradation of existing micro food processing enterprises, the State Rural Livelihood Missions in the States and Union Territories (UT)s and the State Nodal Agencies appointed by MoFPI are executing the program in close coordination.

This involves identification of targeted eligible beneficiaries, capturing their aspirations & growth plans in the form of applications, digitize, review, recommend and approve them.  

The States are in process of releasing funds to respective SHGs and SHG members through the network of community organizations like Cluster Level Federations (CLFs) and Village Organizations (VOs). 

A robust system is also being developed for regular monitoring of the rural food processing enterprises operationalized by SHG members and supported under this scheme.

This convergence has leveraged the strength of both the Ministries and is sure to empower rural women livelihoods in the critical sector of food processing.


  1. Dear Sir,
    Daily / Weekly “HAAT” or BAZAR happens to be a good revenue resource for our local bodies. A seller, appearing in these HAATs is provided ample space, shades, raised platforms and other amenities with proper safety and security and is encouraged to display and sell his surplus agri-products after paying a service charge in the form of “CHUNGI”. Revenue accrued from these HAATs is used for dispensing many other constitutional obligations of the PRIs.
    Nowadays, we are witnessing a new marketing spectrum along the i-way. It is local and at the same time global too. Online marketing is quite popular among our netizens. National Optical Fibre Network (NOFN) is connecting all the 2.5 lakh gram panchayat in India. Coupled with the upcoming 5G connectivity it will accelerate online marketing activities. Various categories of applications like e-health, e-education and e-governance etc. will soon be practiced in rural India using NOFN.
    Is it not an opportunity for our local bodies to create virtual marketing platforms in cyberspace ? Here, the producer i.e., our small and marginal farmers, MFPI, rural artisans or the aggregators may be facilitated on line selling of their farm and non farm products . Specially those, who face many compulsions to sell it under a distress sale circumstances and often fall prey to a profiteer or a middlemen. They may be offered an opportunity to display their sale-able items and quote their own price with many other attractive offers/ variants adhering to customer’s choice. It would be displayed with their own price tag and name tag at a E marketing portal accessed by the Zila Parishad. Zila Parishad may create following infrastructure in a PPP MODE specifically using the untied fund made available to PRIs :-
    Access as an admin to district specific P to C E-Commerce pages on a E-District Agriculture Market ( E-DAM), a National Portal duly linked with E-NAM.
    Gram Panchayat wise mini warehouse, mini pack house with a few prominent testing facilities, equipment for sorting, grading, packing materials, as well as barcoding billing invoicing and dispatch arrangements.
    One or two solar powered e-rickshaw in each panchayat for short distance transportation from field to pack house and pack house to nearest collection centre of supply chain.
    Supply chain logistics support from villages to nearest towns, cities or metropolitan by rail road or waterway linked with Kisan Rath portal.
    Home delivery logistics support in the destination towns, cities or metropolitans to deliver commodities purchased online by the consumers.
    Ripening chamber, pre cooling primary processing facilities and cool chain logistics support be created wherever necessary.

    Ministry of Agriculture GOI has allocated Rs. 1 lac crore for financing central, state or local body promoted above mentioned Agriculture Infrastructure.
    It has also declared 135 district specific unique Products for 728 district across the country. PMFME has been launched with an allocation of Rs. 10,000 crore. One of its special component is Marketing and branding support. It would be provided to groups of FPOs/SHGs/ Cooperatives or an SPV of micro food processing enterprises under the scheme. Following the ODOP approach, marketing & branding support would only be provided for such a product at the State or regional level. Support for Common infrastructure would also be provided to FPOs, SHGs, cooperatives, any Government agency, or private enterprises. Common infrastructure created under the PM FME scheme should also be available for other units and the public to utilize on a hiring basis for a substantial part of the capacity. The eligibility of a project under this category would be decided based on the benefit to farmers and industry at large, viability gap, absence of private investment, criticality to value chain. Credit linked grant would be available @ 35% under PMFME .
    Geographical Identity of a product happens to be a loud Branding in itself. Being a time tested item, people’s preference for such GI products is always high. It is highly appreciated by the Family, Neighbors, Friends and Relatives of villagers, migrated to urban areas. On an average, decadal rural to urban migration is estimated to be 20 to 25 percent. Annual domestic consumption of these migrants will create huge demand of rural farm and non farm food products. It may further be popularized through other social media platforms. Once the timely availability of a commodity and it’s quick home delivery on demand is ensured with an assurance of quality and other safety standards we must expect that consumers will themselves be VOCAL FOR LOCAL.
    Following submissions may also be considered objectively.
    (a) Zila Panchayat, a constitutional body is empowered to enforce a proper marketing discipline as well as regulate the quality and safety standards in it’s markets. Assaying services, quality control and value addition support may be provided to farmers registered on the on line marketing portal of the district.
    (b) This virtual marketing portal hosted by Zila Parishad would certainly be appreciated by urban consumers and rural farmers both due to strong sense of safety, security, mutual trustworthiness and acquaintances with each other.
    (c) It has a potential of creating large scale local employment in the long run.
    (d) Local value addition i.e. post harvest management, aggregation, sorting, grading, assaying, processing, preservation, warehousing, safe packaging, barcoding, invoicing, billing, customer care services, dispatch, transportation and home delivery may engage several local individuals, self help groups, joint liability groups and farmer’s producers organizations.
    (e) Farmers, MFPI or Artisans would be receiving maximum share of a rupee paid by consumers.
    (f) Consumers will be able to know the source, journey performed and treatments meted out to, the items thus delivered to them.
    (g) This would be the shortest route between farm to fork. PMGSY has considerably increased the rural road density. Solar powered e rickshaw synchronized with bigger transportation vehicles and faster internet connection , smart phone penetration etc. will reduce the delivery durations.
    (h) It will bridge digital divide between rich and poor farmers.
    (i) A demand driven production system will evolve in the process.
    (j) dispute arising out of such exchange may be resolved within the local legal jurisdiction.
    (k) Local unit of JEEVIKA, NABARD, SIDBI, & ATMA may play crucial role for backward linkages and capacity building of marginal farmer’s groups. However, forward linkages i.e. facilitating an online marketing opportunity, integrating packaging and supply chain logistics services would be prime responsibility of the Zila Panchayt.
    (l) It would create a small and marginal farmers centric new economic system in India.
    This brief concept is being submitted for your kind perusal and further necessary action. You may give us a call to explain our submissions in detail.
    Thanking you!
    Er. Krishna Kumar, Retd. S. E. WRD, GOB. Mobile 7280800555.


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