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Centre signals major boost for rural food processing under PMFME
Thursday, 11 December, 2025, 16 : 00 PM [IST]
Our Bureau, New Delhi
The Government of India, via MoFPI, has announced a significant ramp-up in support for micro-food processing enterprises across the country under the Pradhan Mantri Formalisation of Micro Food Processing Enterprises Scheme (PMFME) scheme. The move is expected to formalize and strengthen the unorganized food-processing sector, particularly in rural areas, by providing financial, technical and business-development support. 

As of October 31, 2025, MoFPI has sanctioned 162,744 micro food-processing units for credit-linked subsidies under PMFME, with a cumulative sanctioned loan amount of Rs 13,234.90 crore. The scheme does not impose any qualification criteria for enterprises seeking benefits, making the programme broadly accessible to new and existing small-scale processors. 

In a written reply in the Rajya Sabha, the Minister of State for Food Processing Industries noted that the scheme is designed to encourage the formalisation of micro enterprises — including units processing grains, dairy, fruits, vegetables, and other agro-products — thereby enhancing competitiveness, quality standards, and supply-chain efficiency. 

The incentives include access to subsidised credit for setting up new units or upgrading existing ones, integration of better technology, capacity building, and compliance support. This broad-based support mechanism aims to transform informal micro-enterprises into sustainable, scalable businesses. 

By facilitating easier credit access and offering modernisation support, PMFME is expected to boost employment, value addition, and rural income while strengthening India’s food-processing ecosystem. The scheme aligns with the government’s wider objective of formalising the sector and enhancing food-processing capacity across rural India. 
 
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