Context:

The Government has launched the ‘PM Formalization of Micro Food Processing Enterprises (PM FME) scheme’ as a part of “Atmanirbhar Bharat Abhiyan” to provide fi nancial, technical and business support for upgradation of existing micro food processing enterprises.

Details of the PM FME scheme

• The Centrally Sponsored PM Formalisation of Micro Food Processing Enterprises (PM FME) scheme will be implemented over a period of fi ve years from 2020-21 to 2024-25 with an outlay of Rs 10,000 crore.
• The scheme aims to bring in new technology, apart from affordable credit to help small entrepreneurs penetrate new markets.
• 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.
  • In 60:40 ratio with UTs with legislature and 100% by Centre for other UTs.
• The scheme would directly benefit farmers and micro-entrepreneurs who contribute significantly to the Indian economy.