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.
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 ₹10 lakh per unit, and give priority to women entrepreneurs and units in hilly regions.
1 August 2026
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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.
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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 and said processing must be promoted to expand exports and strengthen value chains.
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MoFPI Secretary Avinash Joshi said an extension, in the same or a revised form, is expected soon.
"While there is a temporary extension in place until 30th September, I am confident an extension of the scheme, in the same form or a revised one, will be announced very soon," he said.
He highlighted that nearly 41% of beneficiaries are women entrepreneurs and more than 80% are first-time business owners.
Direct employment generated under the scheme exceeds 10 lakh people.
Formalisation has been achieved in 35-40% of the sanctioned units.
Expenditure in the last two years accounts for more than half of the total outlay, reflecting accelerated implementation.
Joshi also announced that 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.
At the event, the Ministry signed three MoUs with the Agricultural and Processed Food Products Export Development Authority (APEDA), Open Network for Digital Commerce (ONDC) and NabKisaan Finance Ltd to boost exports, digital marketing and credit access for micro food processing enterprises.
Two publications – the PMFME coffee-table book "Swaad Se Samriddhi" and the quarterly magazine "FoodNova" – were also released.
