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Centre expands support for micro & small food processing enterprises under PMFME
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Monday, 02 February, 2026, 13 : 00 PM [IST]
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Our Bureau, New Delhi
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The Ministry of Food Processing Industries (MoFPI) has reinforced its commitment to strengthen micro and small food processing enterprises across the country by scaling up financial, technical and market-linked support under the PM formalisation of Micro Food Processing Enterprises (PMFME) scheme.
The initiative aims to empower micro food entrepreneurs, particularly in rural areas, by facilitating access to credit, promoting formalisation, and creating stronger linkages to markets. Under the expanded support framework, eligible enterprises will receive financial assistance for both setting up new units and upgrading existing ones to enhance productivity and product quality.
A significant thrust of the scheme is on branding and marketing support, with grants of up to 50 per cent of the approved cost available to groups of Farmer Producer Organisations (FPOs), Self-Help Groups (SHGs), cooperatives and Special Purpose Vehicles (SPVs) operating micro food processing enterprises. This measure is designed to help small producers strengthen their market presence, build recognisable brands and reach wider consumer bases.
In addition, the PMFME Scheme emphasises capacity building and training tailored to the needs of the food processing sector. The programme includes a modified Entrepreneurship Development Programme (EDP) that focuses on industry-specific skills, technology adoption, quality control and business management — aimed at promoting entrepreneurship and scaling operations sustainably.
Officials noted that facilitating easier access to formal finance and structured business support will help reduce informality in the sector, enhance competitiveness and create new avenues for value addition. The scheme’s focus on rural and agro-processing clusters is expected to stimulate local economies, generate employment, and contribute to higher incomes for small food producers.
The enhanced support mechanism under the PMFME scheme underscores the government’s drive to unlock growth opportunities in India’s expansive food processing ecosystem and position micro enterprises as key contributors to the agri-food value chain.
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