Pradhan Mantri Formalisation of Micro food processing Enterprises (PMFME) Scheme

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CategoryYojana

Last Updated07/01/2022

Ministry of Food Processing Industries & NAFED launched six One District One Product (ODOP) brands under Pradhan Mantri Formalisation of Micro food processing Enterprises Scheme.
Ministry & NAFED will develop 10 ODOP brands under branding and marketing component of scheme.
Out of these, six brands namely Amrit Phal, Cori Gold, Kashmiri Mantra, Madhu Mantra, Somdana, and Whole Wheat Cookies of Dilli Bakes were launched on 5th Jan 2022.

A centrally sponsored scheme launched under Atma Nirbhar Abhiyan.
Aims to enhance the competitiveness of existing individual micro-enterprises in the unorganised segment of the food processing industry and to promote formalisation of the sector and provide support to Farmer Producer Organisations, Self Help Groups, and Producers Cooperatives along their entire value chain.
It adopts the One District One Product (ODOP) approach to reap the benefit of scale in terms of procurement of inputs, availing common services and marketing of products.
Implementation - from 2020-21 to 2024-25.

Academic and research institutions under MoFPI along with State Level Technical Institutions would be provided support for training of units, product development, appropriate packaging and machinery for micro units.
Existing individual micro food processing units desirous of upgrading their units can avail credit-linked capital subsidy at 35% of the eligible project cost with a maximum ceiling of Rs.10 lakh per unit.
Credit linked grants at 35% for development of common infrastructure including common processing facility, lab, warehouse, etc. through FPOs/SHGs/cooperatives or state owned agencies or private enterprise will be given.
A seed capital (initial funding) of Rs. 40,000- per Self Help Group (SHG) member would be provided for working capital and purchase of small tools.
Marketing and branding support would be provided to groups of FPOs/SHGs/ Cooperatives or an SPV of micro food processing enterprises under the scheme, which are:
Training relating to marketing.
Developing a common brand and packaging including standardisation.
Marketing tie-up with national and regional retail chains.
Quality control to ensure product quality meets the required standards.

Unorganised food processing sector of ~ 25 lakh units contributes to 74% of employment in the food processing sector.
Nearly 66% units are located in rural areas and about 80% are family-based enterprises supporting livelihood of rural households and minimising their migration to urban areas.
These units largely fall within the category of micro enterprises.
Unorganised food processing sector faces a number of challenges like lack of access to modern technology & equipment, training, access institutional credit, lack of basic awareness on quality control of products, and lack of branding & marketing skills etc.

ODOP will provide the framework for value chain development and alignment of support infrastructure.
There may be more than one cluster of ODOP products in one district.
States would identify food products for districts keeping in view the existing clusters and availability of raw material.
ODOP could be a perishable produce based or cereal based or a food item widely produced in an area.
E.g. mango, potato, pickle, millet based products, fisheries, poultry, etc.

Established on 2nd October 1958.
Registered under the Multi State Co-operative Societies Act.
Objectives:
To organize, promote and develop marketing, processing and storage of agricultural, horticultural and forest produce, distribution of agricultural machinery, implements and other inputs, undertake inter-state, import and export trade, wholesale or retail.
To act and assist for technical advice in agricultural, production for the promotion and the working of its members, partners, associates and cooperative marketing, processing and supply societies in India.