The Pradhan Mantri Formalisation of Micro Food Processing Enterprises (PMFME) scheme, which has achieved its target of sanctioning two lakh units, is likely to be extended beyond its current temporary deadline of September 30, either in its present form or with revisions, according to The Hindu Business Line.

The Ministry of Food Processing Industries (MoFPI) has submitted a proposal to continue the central scheme for five more years (2026-31), aligning with the 16th Finance Commission period. The proposal seeks to raise the credit-linked subsidy ceiling, currently capped at Rs 10 lakh per unit, and give priority to women entrepreneurs and units in hilly regions.

Originally approved for 2020-21 to 2024-25 with an outlay of ₹10,000 crore, the scheme was extended through FY 2025-26 and now stands temporarily valid until September 30.

Addressing a national conclave after inaugurating a bazaar where PMFME beneficiaries from 25 states displayed their products, Food Processing Industries Minister Chirag Paswan described PMFME as "one of the rare schemes that has worked to change lives in the right way." He cited examples of beneficiaries, including a young man from Bihar who returned home during the Covid-19 pandemic, utilised the scheme and is now exporting his produce, and a woman in Ladakh who scaled up from a monthly wage of ₹8,000 to running a multi-crore business.

"We have achieved our target of two lakh units... We still have a long way to go, we have only just begun," Paswan said.

He stressed the need for more balanced participation across States, noting that Bihar, Maharashtra and Uttar Pradesh have performed strongly, and called for equal effort from others to build first-generation entrepreneurs. He also sought suggestions and policy ideas to ensure PMFME 2.0 can be implemented more effectively.

The minister underlined the role of food processing in reducing wastage, improving farmers' incomes and positioning India as a global food basket, while emphasising the need to counter the "false" narrative against processed food products. He noted that free trade agreements with 27 countries open new opportunities for food processing exports.

MoFPI Secretary Avinash Joshi said an extension of the PMFME scheme, in the same or a revised form, is expected soon. Nearly 41 per cent of PMFME beneficiaries are women entrepreneurs, more than 80 per cent are first-time business owners, and direct employment generated under the scheme exceeds 10 lakh people. Formalisation has been achieved in 35-40 per cent of sanctioned units, while expenditure in the last two years accounts for more than half of the total outlay.

Under the next cycle of the Pradhan Mantri Kisan Sampada Yojana (PMKSY), PMFME beneficiaries will be exempted from the usual two-year waiting period for further assistance.

Conclave and Bazaar

The Ministry of Food Processing Industries is organising the PMFME Conclave 2026 on August 24-25 at India Habitat Centre, bringing together over 500 stakeholders to deliberate on strengthening the micro food processing ecosystem and enhancing access to finance, technology and markets, as reported by ANI.

The Conclave was inaugurated by Minister Chirag Paswan, who also inaugurated the PMFME Bazaar, a major attraction of the two-day event. The Bazaar features exhibitors from 25 States and Union Territories, showcasing a wide range of unique, ethnic and traditional food products representing India's rich culinary and cultural diversity.

During his visit to the Bazaar, the Minister interacted with PMFME beneficiaries and exhibitors, explored their products, and appreciated their entrepreneurial journeys. The exhibition provides a platform for micro food processing enterprises, Self Help Groups (SHGs), Farmer Producer Organisations (FPOs), cooperatives and individual entrepreneurs to showcase their products, connect with buyers and explore new market opportunities.

The PMFME Bazaar brings together an impressive range of region-specific and traditional food products, including processed foods, millet-based products, spices, pickles, snacks, beverages, and other value-added products. The exhibition highlights how local raw materials, traditional knowledge and grassroots entrepreneurship are being transformed into market-ready food products through support under the PMFME Scheme.

As per the Ministry of Food Processing Industries, "The Bazaar also serves as a platform for beneficiaries to gain visibility beyond their local markets and explore opportunities in institutional procurement, modern retail, digital commerce and export markets. It reflects the Ministry's emphasis on moving micro enterprises from production at the local level towards s..."

The two-day Conclave brings together representatives from all States and Union Territories, District Nodal Officers, District Resource Persons, banks and financial institutions, Ministries and Government organisations, technical institutions, industry bodies, incubation centres and PMFME beneficiaries.

Chirag Paswan highlighted the importance of strengthening the micro food processing ecosystem with support beyond financial assistance, including technology, capacity building, quality, branding and market access. He emphasised the need for a stronger and more comprehensive PMFME 2.0.

The first day of the Conclave featured four thematic technical sessions covering access to finance and sustainability; incubation and entrepreneurship; domestic and global market linkages; and strengthening SHG-led food enterprises through clusters and institutional support.

MoUs and Publications

The Ministry signed three MoUs with APEDA, ONDC and NABKISAN (NabKisaan Finance Ltd / National Bank for Agriculture and Rural Development Kisan Finance Limited) to boost exports, digital marketing and credit access for micro food processing enterprises. The Ministry also released the PMFME coffee-table book "Swaad Se Samriddhi" and the quarterly magazine "FoodNova". The coffee-table book features 30 success stories of PMFME beneficiaries.