Bhubaneswar: With an aim to accelerate the growth of the food processing sector and strengthen rural livelihoods, the Odisha government on Tuesday reviewed the progress of the Pradhan Mantri Formalisation of Micro Food Processing Enterprises (PMFME) Scheme at a high-level meeting chaired by Chief Secretary Anu Garg at Lok Seva Bhavan.
The review comes in the backdrop of the extension of the Centrally sponsored scheme till the end of the 2025–26 financial year, providing renewed momentum to efforts aimed at integrating micro food processing units operating in the unorganised sector into the formal economic framework. The initiative focuses on improving access to finance, technology, and regulatory support to create sustainable and market-ready enterprises.
Under the scheme, entrepreneurs are provided with credit-linked subsidies along with technical assistance for securing mandatory clearances such as FSSAI licensing, enterprise registration, and KST registration. The programme is jointly funded by the Centre and the State in a 60:40 ratio, with the Union Ministry of Food Processing Industries overseeing national implementation and the MSME Department executing it at the state level.
The PMFME framework prioritises the establishment of individual micro-units, alongside the promotion of collective enterprises for product development, branding, and marketing. Special focus is laid on empowering women self-help groups and small farmers by enabling them to upgrade product quality, improve packaging standards, and gain better access to markets.
Individual beneficiaries can avail a 35 per cent credit subsidy, up to ₹1 lakh, for setting up new enterprises or modernising existing units. For self-help groups, the scheme offers seed capital support of up to ₹40,000 per member and financial assistance of up to ₹4 lakh. Additionally, subsidies of up to 35 per cent are available for setting up shared infrastructure facilities such as cold storage units and food processing centres.
The scheme has made significant headway in Odisha, with 31,244 beneficiaries receiving support, 11,517 individuals trained, and 3,437 entrepreneurs securing subsidy-backed loans. To further boost sectoral capacity, a fish processing incubation centre has been established at Rangeilunda in Ganjam district in collaboration with the Odisha University of Agriculture and Technology (OUAT).
Emphasising the need for greater synergy, Chief Secretary Anu Garg underscored the importance of inter-departmental coordination and called upon the MSME Department to adopt a convergent approach to enhance outreach, ensure efficient implementation, and amplify the scheme’s socio-economic impact across the state.