Minister for Food Processing Industries Harsimrat Kaur Badal launched the PM Formalization of Micro Food Processing Enterprises (PM FME) scheme on 29th June as a part of “Atmanirbhar Bharat Abhiyan”, in the presence of MoS, FPI Rameswar Teli. 

Union Minister said that the Scheme would generate a total investment of Rs 35,000 crore and generate 9 lakh skilled and semi-skilled employment and benefit 8 lakh units through access to information, training, better exposure and formalization. The guidelines of the Scheme were released on the occasion.

Highlighting the role of local food processing units, Union Minister said that food products manufactured by the rural entrepreneurs in the villages have a long tradition of supplying Indian food products to the local population.

Speaking about the challenges faced by the food processing sector, Badal said that the unorganised food processing sector faces a number of challenges which limit their performance and their growth. She added that these challenges include 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. She shared that owing to these challenges, the unorganised food processing sector contributes much less in terms of value addition and output despite its huge potential.

Union FPI Minister said that the unorganized food processing sector comprising nearly 25 lakh units contribute to 74% of employment in the food processing sector. Nearly 66% of these units are located in rural areas and about 80% of them are family-based enterprises supporting livelihood rural household and minimizing their migration to urban areas. These units largely fall within the category of micro-enterprises.

Details of the PM FME scheme

Free on-line Skilling programme for the SC/ST Food Processors