Govt launched PM FME scheme to help micro food processing enterprises

The government of India has launched Pradhan Mantri Formalisation of Micro Food Enterprises (PM FME) scheme for micro enterprises which offers 50% subsidy for storage and transportation to prevent distress sale by farmers.

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Key-Points

It aims to bring in new technology, apart from affordable credit to help small entrepreneurs penetrate new markets.

The scheme will be implemented for five years until 2024-25. It will generate investment of Rs 35,000 core, generate 900,000 jobs and help 800,000 units.

This Centrally Sponsored Scheme will be implemented over a period of five years from 2020-21 to 2024-25 with an outlay of Rs 10,000 crore.

The expenditure under the scheme would to be shared in 60:40 ratio between Central and State Governments, in 90:10 ratio with North Eastern and Himalayan States, 60:40 ratio with UTs with legislature and 100% by Centre for other UTs.

Under the PM FME scheme, micro enterprises will get 35% subsidy on project cost, with a ceiling of Rs 10 lakh.

Under the scheme, meant for the unorganised sector, the expenditure will be shared by the central and state governments in the ratio of 60:40.

The ministry will provide the 50% subsidy for “transportation of eligible crops from surplus production clusters to consumption centres or hiring of appropriate storage facilities for eligible crops for a maximum period of three months.

The maximum subsidy amount per applicant will be Rs 1 crore during a six-month period, said the minister.