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Food Processing35% Direct Grant

PMFME Scheme: How to Get a 35% Government Grant
for Your Food Processing Business

NaavBharat Advisory TeamMay 20265 min read

If you run any kind of food processing business — from a home-based pickle unit to a small dairy — PMFME (PM Formalisation of Micro Food Enterprises) is one of the most generous schemes available. It gives you a 35% capital grant (up to ₹10 Lakh) to upgrade your technology, get certified, and scale up. Here's everything you need to know.

How the Grant Works — A Real Example

Your Project Cost (example)

Total machinery + civil works + equipment

₹25 Lakh

PMFME Grant (35%)

Direct capital grant — no repayment

₹8.75 Lakh

Bank Loan (60%)

Covered under CGTMSE if needed

₹15 Lakh

Your Contribution (5%)

Margin money from your own funds

₹1.25 Lakh

What Food Businesses Qualify?

Bakery and confectionery products
Dairy (paneer, ghee, curd, cheese)
Spices, pickles, chutneys
Papad, snack foods, namkeen
Fruits and vegetables processing (drying, canning, juicing)
Jaggery, khandsari, sugar
Beverages (juices, sharbat, herbal drinks)
Fisheries and seafood processing
Poultry and meat processing
Milling (flour, rice, pulses)
Oil extraction (groundnut, coconut, sesame)
Honey processing and packaging
Ready-to-eat and convenience foods

What is ODOP and Why It Matters for PMFME

ODOP (One District One Product) applications get priority processing and are more likely to be approved. If your food product is the ODOP crop of your district, mention it prominently in your application.

MaharashtraMango / Oranges / Sugarcane
GujaratGroundnut / Kesar Mango / Dates
PunjabWheat / Basmati Rice / Honey
KarnatakaRagi / Coffee / Areca Nut
RajasthanBajra / Mustard / Isabgol
UPWheat / Potato / Amla
Tamil NaduBananas / Tamarind / Coconut
West BengalRice / Hilsa Fish / Jute Products

Documents Required for PMFME

Udyam Registration Certificate

Mandatory — obtain before applying

FSSAI License / Basic Registration

Or proof of application; we assist with this

Business Proof (2+ years of operation)

Sales records, GST returns, bank statements

Land / Premises Documents

Ownership deed or registered rent agreement

Machinery Quotations

From registered suppliers for proposed equipment

Aadhaar Card & PAN Card

Proprietor or authorised director

Bank Account Statements (12 months)

Business account

Is your food business PMFME-eligible?

NaavBharat maps your food enterprise to ODOP clusters, arranges FSSAI + Udyam, and handles the complete PMFME grant application. Zero upfront fees.

Check PMFME Eligibility Free