THEBUSINESSBYTES BUREAU
BHUBANESWAR, FEBRUARY 25, 2026
In a decisive move to strengthen and formalise Odisha’s micro food processing
ecosystem, the State-Level Approval Committee for the Pradhan Mantri
Formalisation of Micro Food Processing Enterprises (PMFME) scheme convened on Wednesday
under the chairmanship of Chief Secretary Anu Garg at Lok Seva Bhawan. The
high-level meeting marked a renewed push to empower grassroots entrepreneurs
and deepen the state’s commitment to inclusive economic growth.
Originally scheduled for implementation from 2020-21 to 2024-25, the
PMFME scheme has now been extended to the 2025-26 financial year, widening the
window of opportunity for thousands of aspiring and existing micro food
entrepreneurs across the state. The extension is expected to significantly
accelerate the formalisation of unorganised food processing units, enabling
them to integrate into structured markets with improved access to credit,
technology and regulatory support.
Launched by the Government of India, the PMFME scheme seeks to transition
informal food processing enterprises into the organised sector by providing
credit-linked subsidies, technical assistance for FSSAI licensing, Udyam
registration and GST enrolment. The scheme operates on a 60:40 funding model
between the Centre and the State, with the Ministry of Food Processing
Industries steering national coordination and Odisha’s MSME Department
overseeing implementation at the state level.
The initiative places strong emphasis on setting up individual
enterprises, building common infrastructure and promoting branding and
marketing capabilities. It has emerged as a transformative platform for rural
women’s self-help groups and small farmers, enabling them to enhance product
quality, modernise packaging and expand market access.
Under the scheme’s financial framework, individual entrepreneurs are
eligible for a credit-linked subsidy of up to 35 percent, capped at Rs 10 lakh,
for establishing new units or upgrading existing ones. Members of self-help
groups can access seed capital of up to Rs 40,000 each for working capital and
small equipment needs, while group-based assistance extends up to Rs 4 lakh.
Additionally, common infrastructure projects such as cold storage facilities,
processing centres and laboratories qualify for grants of up to 35 percent,
strengthening collective capabilities in the sector.
Odisha’s performance under the scheme has been noteworthy. So far, 31,244
SHG beneficiaries have been supported, 11,517 individuals have received
structured training and 3,437 entrepreneurs have availed credit-linked
subsidies. The state has consistently ranked high in annual growth metrics,
reflecting both administrative efficiency and strong grassroots participation.
Among its flagship achievements are the establishment of a fish
processing incubation centre at Rangeilunda in Ganjam district in collaboration
with OUAT, and support for a mini Trifood unit in Khunta block of Mayurbhanj
district. The state’s average loan size under the scheme stands at Rs 8.25
lakh, surpassing the national average of Rs 7.50 lakh. With a fund utilisation
rate of 94.20 percent, Odisha has demonstrated robust implementation and
effective deployment of resources.
During the meeting, Chief Secretary Anu Garg underscored the importance of seamless execution and inter-departmental convergence. She urged the MSME Department to align the PMFME scheme with complementary programmes to help transform self-help groups into sustainable micro and medium enterprises, while encouraging youth to emerge as new-generation entrepreneurs driving rural industrialisation.
The session witnessed the participation of senior officials across departments, including Commissioner-cum-Secretary of Women and Child Development Dr. Mrinalini Darswal, Commissioner-cum-Secretary of Sports and Youth Services, Skill Development and Technical Education Bhupendra Singh Poonia, Commissioner-cum-Secretary of MSME Rashmita Panda, Commissioner-cum-Secretary of Agriculture and Farmers’ Empowerment Sachin Ramchandra Yadav, Commissioner-cum-Secretary of Mission Shakti Manasi Nimbhal, along with other senior representatives.
