Cabinet approves scheme for micro food processing enterprises

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With an outlay of Rs.10,000 crore

The Union Cabinet, chaired by the Prime Minister Narendra Modi, has given its approval to a new Centrally Sponsored Scheme – “Scheme for Formalisation of Micro food processing Enterprises (FME)” for the Unorganized Sector on All India basis with an outlay of Rs.10,000 crore.  The expenditure will be shared by GOI and the States in ratio of 60:40.


Details of the Scheme:



  • Increase in access to finance by micro food processing units.
  • Increase in revenues of target enterprises.
  • Enhanced compliance with food quality and safety standards.
  • Strengthening capacities of support systems.
  • Transition from the unorganized sector to the formal sector.
  • Special focus on women entrepreneurs and Aspirational districts.
  • Encourage Waste to Wealth activities.
  • Focus on minor forest produce in Tribal Districts.


Salient features:

  • Centrally Sponsored Scheme. Expenditure to be shared by Government of India and States at 60:40.
  • 2,00,000 micro-enterprises are to be assisted with credit linked subsidy.
  • Scheme will be implemented over a 5 year period from 2020-21 to 2024-25.
  • Cluster approach.
  • Focus on perishables.

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