Aatma Nirbhar Bharat Package for Micro Enterprises

IAS Prelims 2023

As part of the Aatmanirbhar Bharat Initiative, Ministry of Food Processing Industriesis implementing a Centrally Sponsored PM Formalisation of Micro food processing Enterprises (PMFME) Scheme for providing financial, technical and business support for setting up/ up gradation of 2 lakh micro food processing enterprises through credit linked grant  during five years from 2020-21 to 2024-25 with an outlay of Rs. 10,000 crores.

The scheme envisages supporting micro enterprises through increased access to credit, integration with organized supply chain by strengthening branding and marketing, increased access to common services, strengthening of institutions, research & training in the food processing sector.

The details of support to Micro Food Processing Units under the scheme are mentioned below:

(i). Support to Individual Micro Enterprises: Credit-linked capital grant @35% of the eligible project cost, maximum ceiling Rs.10 lakh per unit;

(ii). Support to FPOs/ SHGs/ Producer Cooperatives: Credit linked Grant @35% to support clusters and groups such as FPOs/ SHGs/ Producer Cooperatives along their entire value chain for sorting, grading, storage, common processing, packaging, marketing, testing etc.

(iii). Support to SHGs for seed capital: Seed capital @ Rs. 40,000/- per member of SHG engaged in food processing for working capital and purchase of small tools.

(iv). Support for Common Infrastructure: Credit linked grant @ 35% to support FPOs, SHGs, Cooperatives, any Government agency or private enterprises for Common infrastructure. The common infrastructure will also be available for other units and public to utilize on hiring basis for substantial part of the capacity.

(v). Branding and Marketing Support: Grant upto 50% for Branding and Marketing to groups of FPOs/ SHGs/ Cooperatives or an SPV of micro food processing enterprises.

(vi). Capacity Building: Training for Entrepreneurship Development Program to meet the requirement of food processing industry and product specific skilling.

Under Marketing and Branding component of the scheme, the following support to micro enterprises has been envisaged:


(i) Developing a common brand and packaging including product standardization (ii) Marketing tie up with national and regional retail chains and state level institutions (iii) Quality control to ensure product quality meets required standards (iv) Training relating to marketing

The major eligible components for support under the scheme are Market study, Product standardization (including quality assurance), Packaging material, Graphic designing, warehousing/ storage rentals, Promotional activities, Training related to Sales & Marketing and Trademark registration.

This information was given by Minister of State for M/o Food Processing Industries, Shri Prahlad Singh Patel in a written reply in Rajya Sabha today



    Source PIB