Current Context: The PM Formalisation of Micro Food Processing Enterprises (PMFME) Scheme was launched on 29 June 2020 by the Ministry of Food Processing Industries (MoFPI) under the Aatmanirbhar Bharat Abhiyan. It is a Centrally Sponsored Scheme implemented in partnership with States and Union Territories.
- The scheme aims to formalise and upgrade micro food processing enterprises by providing financial, technical and business support, thereby improving their competitiveness and promoting the unorganised food processing sector.
- The scheme has a total outlay of ₹10,000 crore and was designed to support 2 lakh micro food processing enterprises across the country.
- Individual entrepreneurs are eligible for a 35% credit-linked capital subsidy, subject to a maximum subsidy of ₹10 lakh for setting up or upgrading food processing units.
- The scheme also provides seed capital assistance of ₹40,000 per Self-Help Group (SHG) member for working capital and the purchase of small tools. It extends support to Farmer Producer Organisations (FPOs), SHGs and Producer Cooperatives for common infrastructure, branding and marketing.
- A key feature of PMFME is the One District One Product (ODOP) approach, under which each district promotes a unique food product based on its agricultural and traditional strengths to enhance value addition and exports.
- Beneficiaries receive handholding support through District Resource Persons (DRPs), including preparation of project reports (DPRs), assistance in obtaining bank loans, training, FSSAI registration, GST registration, quality improvement and technology upgradation.
- The scheme promotes employment generation, food processing, entrepreneurship, value addition to agricultural produce, reduction of post-harvest losses and higher income for farmers, thereby strengthening India's food processing ecosystem.
Question:
Q1. What is the total financial outlay of the PMFME Scheme?
a) ₹5,000 crore
b) ₹7,500 crore
c) ₹10,000 crore
d) ₹12,000 crore
Answer: c) The scheme has a total outlay of ₹10,000 crore and aims to support 2 lakh micro food processing enterprises.
