1 PM FME Scheme 2022 – Apply Online 2 PMFME Scheme 2022 – Overview.Pradhan Mantri Formalisation of Micro food processing Enterprises (PMFME) Scheme marks the completion of its one year implementation.Increased access to common services like sorting, grading, processing, packaging, storage etc.Better integration with organized markets.Scheme envisages increased access to credit by existing micro food processing entrepreneurs, women entrepreneurs and entrepreneurs in the Aspirational Districts.The project is likely to generate nine lakh skilled and semi-skilled jobs.It will enable them to formalize, grow and become competitive.Credit linked subsidy support and hand-holding will be extended to 2,00,000 micro enterprises for expansion and upgradation.Nearly eight lakh micro- enterprises will benefit through access to information, better exposure and formalization.A third party evaluation and mid-term review mechanism would be built in the programme.The Scheme would be monitored at the Centre by an Inter-Ministerial Empowered Committee (IMEC) under the Chairmanship of Minister, Food Processing Industries.It also envisages linkage of clusters with lead buyers.The scheme also supports SHGs/ FPOs/ Co-operatives in brand building and marketing for the micro-enterprises.Beneficiary contribution will be minimum 10% and balance through loan.Micro food enterprises will be supported with credit linked subsidy 35% of the eligible project cost with a ceiling of Rs.10 lakh.Scheme will be implemented over a 5 year period from 2020-21 to 2024-25.2,00,000 micro-enterprises are to be assisted with credit linked subsidies.Focus on minor forest produce in Tribal Districts.Special focus on women entrepreneurs and Aspirational districts.Transition from the unorganized sector to the formal sector.Strengthening capacities of support systems.Enhanced compliance with food quality and safety standards.Increase in revenues of target enterprises.Increase in access to finance by micro food processing units.The expenditure under the scheme would be shared in a 60:40 ratio between the Central and State governments and in 90:10 ratio with North Eastern and Himalayan States.Strengthening this segment will lead to reduction in wastage, creation of off-farm job opportunities and aid in achieving the overarching Government objective of doubling farmers’ income.To support FPOs/ SHGs/ Cooperatives for delivery of package of services, creation of common infrastructure along the value chain, ensure backward & forward linkages, branding & marketing, etc.Modernize and enhance the competitiveness of the existing individual micro enterprises and ensure their transition to formal sector.The PM Formalisation of Micro Food Processing Enterprises scheme aims to.To address these problems, the Government of India approved an all India Centrally Sponsored Scheme “PM Scheme for Formalisation of Micro food processing Enterprises (PM FME)” in 2020.The sector faces a number of challenges including the inability of the entrepreneurs to access credit, high cost of institutional credit, lack of access to modern technology and inability to integrate with the food supply chain and compliance with the health and safety standards.With only 7% of investment in plant & machinery and 3% of outstanding credit, the unorganized enterprises contribute to 74% of employment (a third of which are women), 12% of output and 27% of the value addition in the food processing sector.The unorganized food processing sector in the country comprises nearly 25 lakh food processing enterprises which are unorganized and unregistered.