In a significant push towards formalising the micro food processing sector, the State-Level Approval Committee for the Pradhan Mantri Formalisation of Micro Food Processing Enterprises (PMFME) scheme convened under the chairmanship of Chief Secretary Anu Garg at the Lok Seva Bhawan conference hall on Wednesday.
The scheme, originally slated for 2020-21 to 2024-25, has been extended by one year to the 2025-26 financial year, enabling more micro entrepreneurs in Odisha to benefit from its provisions.
The PMFME scheme, initiated by the Central Government, aims to transition unorganised food processing units into the organised sector. It offers credit-linked subsidies, technical assistance for obtaining FSSAI licenses, Udyam registration, and GST enrollment. The funding is shared between the Centre and the State in a 60:40 ratio, with the Ministry of Food Processing Industries overseeing national coordination and the MSME Department handling state-level implementation.
Key emphases of the scheme include establishing individual units, developing common infrastructure, and promoting branding and marketing. This extension is expected to particularly empower rural women’s self-help groups (SHGs) and small farmers by enhancing product quality, packaging, and market access. Beneficiaries can avail a range of financial and technical supports: individuals receive up to 35% credit-linked subsidy (capped at Rs 10 lakh) for new setups or modernising existing units. SHG members are eligible for seed capital up to Rs 40,000 each for working capital and small equipment, with group support extending up to Rs 4 lakh. Common facilities like cold storage, processing centers, and laboratories qualify for 35% grants.
To date, the scheme has assisted 31,244 SHG beneficiaries, provided training to 11,517 individuals, and disbursed credit-linked subsidies to 3,437 recipients. Odisha’s performance stands out nationally in annual growth metrics. Notable achievements include the establishment of a fish processing incubation centre in Rangeilunda, Ganjam district, in collaboration with OUAT, and support for a mini Trifood unit in Khunta block, Mayurbhanj. The state’s average loan size under the scheme is Rs 8.25 lakh, surpassing the national average of Rs 7.50 lakh, while fund utilisation reaches an impressive 94.20%, reflecting effective implementation.
During the meeting, Chief Secy Garg stressed the importance of successful execution, urging the MSME Department to foster convergence with other programs to transform SHGs into micro and medium entrepreneurs and enable youth to become young entrepreneurs.
The session was attended by prominent officials, including Commissioner-cum-Secretary of Women and Child Development Dr Mrinalini Darswal, Commissioner-cum-Secretary of Sports and Youth Services, Skill Development and Technical Education Bhupendra Singh Poonia, Commissioner-cum-Secretary of MSME Rashmita Panda, Commissioner-cum-Secretary of Agriculture and Farmers’ Empowerment Sachin Ramchandra Yadav, Commissioner-cum-Secretary of Mission Shakti Manasi Nimbhal, and senior representatives from various departments.
This initiative underscores Odisha’s commitment to bolstering the food processing industry, creating employment opportunities, and driving rural economic growth.
