The Pradhan Mantri Formalisation of Micro Food Processing Enterprises (PMFME) scheme is set for a significant extension beyond its current temporary deadline of September 30, 2026. According to reports from Business Standard, 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.
The scheme has successfully achieved its target of sanctioning 200,000 units, as reported by Business Standard. 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. Direct employment generated under the scheme exceeds 1 million people, with formalisation achieved in 35-40% of the sanctioned units. Nearly 41% of beneficiaries are women entrepreneurs and more than 80% are first-time business owners.
According to Business Standard, 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 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. The minister stressed the need for more balanced participation across states, noting that Bihar, Maharashtra and Uttar Pradesh have performed strongly.
MoFPI Secretary Avinash Joshi 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, as reported by Business Standard. 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. The scheme has expenditure in the last two years accounts for more than half of the total outlay, reflecting accelerated implementation.
