Pradhan Mantri Formalisation Of Micro Food Processing Enterprises- Support to Self - Help Groups

The PM-FME Scheme is implemented by the Ministry of Food Processing Industries of the Government of India, launched in June 2020 under the Atmanirbhar Bharat package. The scheme runs from FY 2020-21 to FY 2025-26 with an outlay of ₹10,000 crore. The “Support to Self-Help Groups ” component is designed to support SHGs and their federations engaged in food processing so that they can formalise, scale up, get access to credit/subsidy, strengthen skills and upgrade tools/working capital. Your SHG-based enterprise can benefit by accessing seed capital, credit-linked grants, training and hand-holding under this component.

Key Features
Financial Assistance
Eligibility Criteria
Documents Required
Application Process for the Scheme

Key Features

Seed capital grant for SHG members engaged in food processing: Under this feature, each SHG member engaged in food-processing activity gets seed capital of up to ₹40,000 for working capital and purchase of small tools. The funds are given at the SHG-federation level and flow down as loans to the SHG members.
Credit-linked grant @ 35% for SHG members/federations for capital investment: SHG members applying as a single food-processing unit can avail a credit-linked grant @35% of the project cost (maximum ceiling of ₹10 lakh) like other micro units. SHG federations proposing capital investment can also avail similar grant for the group/federation level project.
Training & hand-holding support via the SHG network: The scheme recognises the role of SHG federations and the State Rural Livelihood Missions to provide training, capacity-building and hand-holding to SHG members in food-processing, tool usage, hygienic practices, business formalisation and other upgrade processes.
Priority for SHGs involved in ODOP produce: The scheme gives priority to SHGs involved in the district-identified ODOP product . This means if your SHG is working with the ODOP food commodity of your district you may get priority in support.
Eligibility of SHG members and federations, plus track-record criteria: SHG members must be already engaged in food-processing, the SHG/federation must meet minimum criteria, e.g., experience, own funds, etc. Shared turn-out is required.

Financial Assistance

Component	Assistance Provided	Detailed Explanation
Seed Capital for SHG Members	Grant of ₹40,000 per SHG member	Example: Your SHG has a member who processes a snack product; the SHG federation may allocate ₹40,000 to that member for procurement of small tools and working capital to improve processing capacity.
Credit-Linked Grant for SHG Members/Federations	Grant at 35% of eligible project cost, max ~₹10 lakh per unit	Example: A SHG federation plans a small food-processing line costing ₹30 lakh; under this component the federation may get @35% grant (~₹10.5 lakh but subject to ceiling) linked to bank loan, and the SHG / federation must bring equity + bank loan.
Training & Hand-holding Support	Training, capacity building, hand-holding services for SHGs and members	Example: The SRLM trains your SHG members on packaging hygiene, use of upgraded machines, and will hand-hold you in DPR preparation, loan linkage and formalisation.

Eligibility Criteria

Who Can Apply:

SHG members currently engaged in food-processing activity in the unorganised segment of the micro-food processing sector.
SHGs or SHG Federations willing to formalise and upgrade food‐processing activities, plan investment and meet viability requirements.
Preference for units producing the district-specific ODOP product or existing units upgrading the same.

Who Cannot Apply

SHG members who are not engaged in any food-processing activity or whose proposed activity falls outside scheme guidelines .
SHGs or federations unable to mobilise the minimum own contribution or margin money (as per scheme norms: e.g., SHG contribution of own funds or margin for working capital).
Projects not aligned with ODOP product in the district or units without required linkage/viability as per DPR guidelines.

Documents Required

Identity proof & Address proof of SHG member or SHG federation.
Proof of SHG registration/ federation details (Village Organisation/Cluster Level Federation documents).
Evidence of food-processing activity of SHG member or proposal for new activity: product details, ODOP linkage, turnover, activity profile.
Bank account details of SHG or SHG federation, KYC of promoter.
Project proposal / Detailed Project Report for capital investment showing cost, financial viability, raw-material/market linkage.
For seed-capital component: tool purchase list, working-capital requirement, SHG federation consent & loan-corpus arrangements.
Any additional state-specific clearances/registrations as required.

Application Process for the Scheme

Option 1: Apply with Bullit

Click here to start with guided support. Our team verifies eligibility, compiles documents, and handles application & follow-ups on your behalf. You can monitor progress while focusing on operations.
Recommended for: SHG members or SHG federations seeking seamless application for PMFME support.

Option 2: Direct Government/State Process

Approach the State Nodal Agency / State Rural Livelihood Mission of your state for the PMFME SHG component.
Identify eligible SHG-member food-processing activity or SHG federation project, prepare required documentation .
Submit application for seed-capital grant or credit-linked subsidy under the SHG component.
On approval, implement the activity, availing subsidy and meeting scheme conditions.

Option 3: Apply Through the Official Online Portal

Applicants can also submit their application directly through the official portal of the implementing authority.
The process involves completing an online form, attaching the required documents, and submitting it digitally for review. Once submitted, the authority verifies the details and communicates further steps or approval status to the applicant.
This option is suitable for SHG-members/federations comfortable managing the process independently through the official online system.