Uttar Pradesh has been one of the top-performing states in Pradhan Mantri Formalisation of Micro Food Processing Enterprises (PMFME) scheme implementation, often ranking among the leaders nationally in loan sanctions, disbursements, beneficiary outreach, and ODOP integration. This success stems from strong state administration, convergence with UP’s robust ODOP program, extensive awareness drives, District Resource Persons (DRPs), training camps, and proactive bank linkages. The PMFME scheme is a centrally sponsored initiative by the Ministry of Food Processing Industries (MoFPI), launched in 2020 under Atmanirbhar Bharat. With a Rs 10,000 crore outlay (extended till March 2026), it formalizes and upgrades micro food processing units in the unorganized sector, provides financial/technical support, reduces post-harvest losses, generates rural employment, and promotes value addition through the One District One Product (ODOP) approach.Till year 2025 as many as 3,650 micro food processing enterprises formalized owing to effective implementation of the scheme in UP (out of national total 59,202). The state saw high volumes of credit-linked subsidies (35 percent up to Rs 10 lakh/unit) and disbursements which includes thousands of beneficiaries, with strong participation from women-led Self Help Groups (SHGs) in pickles, spices, papad, bakery, dairy, millet products, etc. The implementation also ensured effective merging of PMFME with ODOP, prioritizing district-specific products like:
- Mango (Lucknow/Malihabad)
- Potato (Agra/Kannauj)
- Amla (Pratapgarh)
- Guava (Prayagraj)
- Kala Namak rice (Siddharthnagar)
- Jaggery (Muzaffarnagar)
- Dairy and more.
Districts like Prayagraj have emerged as intra-state leaders with hundreds of supported entrepreneurs resulting into significant employment generation, income boost for farmers/processors, and reduced post-harvest losses through modern packaging, branding, and FSSAI compliance.
Incentives
Credit-Linked Capital Subsidy: 35 percent of eligible project cost (max Rs 10 lakh per unit) for new/upgraded micro units. Beneficiary contributes min. 10 percent rest via bank loan.Seed Capital for SHGs: Rs 40,000 per member (max Rs 4 lakh per federation) for tools & working capital.Common Infrastructure: 35 percent subsidy (up to Rs 3 crore) for FPOs/SHGs/cooperatives (e.g., cold storage, labs, incubation centers).Branding, Marketing & Training: Support for packaging, FSSAI compliance, market linkages, and skill development.Focus: ODOP products for scale in procurement, processing, and marketing.
Eligibility
Individuals ( over 18 years of age, Class 8 pass, one per family)SHGs, FPOs, cooperatives engaged in food processing.Existing units prioritized; ODOP alignment helps.Outstanding performance in Uttar PradeshEconomic: Enhanced rural incomes, value addition, and potential for exports.Social: Empowerment of women/youth via SHGs and entrepreneurship.Strategic: Positions UP as a major food processing hub by 2027, aligning with state and national goals.UP’s model of PMFME-ODOP convergence is often cited as an example for other states. Continued focus on infrastructure, market linkages, and credit facilitation is expected to yield even greater results.For district-wise application support in UP, one may visit the PMFME portal, Uttar Pradesh Food Processing Department, or contact local DRPs.
