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Food processing

Food processing subsidy – PMFME

For flour mills, dal and spice units, bakeries, pickles, oil mills, dairy products and other small food units.

What you get

ComponentSupport
Individual micro units35% credit-linked capital subsidy on eligible project cost, maximum ₹10 lakh per unit
Common infrastructure for FPOs / SHGs / co-operatives35%, maximum ₹3 crore
Seed capital for SHG members₹40,000 per member for working capital and small tools
Branding and marketing (groups)Up to 50% grant

Process

  1. Register on the PMFME portal; a district resource person helps with the DPR.
  2. The application is checked at district level and sent to the bank.
  3. The bank sanctions the loan; the subsidy is released against it.

Larger food units (above micro size) can look at Maharashtra's industrial incentives under MIISP-2025 and central schemes, depending on the product.

Common questions

Who can apply for PMFME?

Individual micro food-processing units (proprietorship or partnership), new or upgrading, and groups such as FPOs, SHGs and co-operatives.

Is the 35% paid upfront?

No. It is credit-linked: the bank sanctions the loan, and the subsidy is released against it.

Source: PMFME scheme guidelines; Lok Sabha reply AU636 dated 06.02.2025.