PM Formalisation of Micro food processing Enterprises (PMFME) – Society for Elimination of Rural Poverty, Andhra Pradesh

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Promoting and Supporting FPOs, SHGs and Producers Enterprises

Problem

• Mobilizing the eligible micro food processing beneficiaries and higher order enterprises.
• Pending loan applications at banks regarding higher-order enterprises.
•  Lack of access to modern technology and equipment.
• Lack of basic awareness on quality control of products.
• Lack of branding and marketing, and e-commerce skills

Solution

• Involving SHG members in the processing sector for identification and raising awareness among the beneficiaries.
• Releasing funds to beneficiaries with the support of project staff.
• Organising training programs at the district level for packing and branding, e-commerce and online marketing registration with the support of PMFME.
• Conducting awareness programs in each and every district for HOEs, SERP and APFPS by both teams.
• Developing an environment of entrepreneurship.

Outcomes

• Maintained FSSAI standards.
• Developed an environment for entrepreneurship.
• Higher-order entrepreneurs get 35% of the subsidy from the central government.
• Beneficiaries improved their business by using seed capital amount as capital investment to their business.
• Beneficiaries from Seed capital and higher order entrepreneurs developing livelihoods and buying assets.

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Case Study

Developing Micro Food Processing Enterprises

Introduction

PMFME (Pradhana Manthri Formulization of Micro Food Processing Enterprises Scheme) aims to overcome the unorganized to organized food processing sector, promote formalization of the sector and Support FPOs, SHGs and Producers Enterprises along their entire value chain. 

Problems

Mobilizing the eligible micro food processing beneficiaries and higher order enterprises. Also, there was a lack of access to modern technology and equipment.

Solutions

Releasing funds to beneficiaries with the support of project staff. Again, organising training programs at the district level for packing and branding, e-commerce and online marketing registration with the support of PMFME.

Outcomes

Beneficiaries improved their business by using seed capital amount as capital investment to their business. Also, now higher-order entrepreneurs are getting 35% of the subsidy from the central government.

Challenges

Some beneficiaries were of 70+ age. Because of the segregation of the districts in Andhra Pradesh some beneficiaries had to migrate from rural to urban. Also, technical problems like Aadhar duplication, name not visible in VOA /CC login, etc posed a challenge.

Innovation

The creation of login registration for both the beneficiaries from seed capital and HOE by the PMFME is an innovative aspect of this project.

Opportunities

Plans are to provide PMFME loans to 10,000 beneficiaries from Seed capital and Higher Order Enterprises (HOEs).

Summary

PMFME (Pradhana Manthri Formulization of Micro Food Processing Enterprises Scheme) which is being implemented by the Ministry of Food Processing Industries (MoFPI) aims to overcome the unorganized organized food processing sector, promote formalization of the sector and Support FPOs, SHGs and Producers Enterprises along their entire value chain. PMFME team has given training to SHG members with the help of SERP- AP. The SERP has released RS.29.29 crores for 7,597 micro food processing beneficiaries and nearly 275.95 Lakhs for 44 higher order enterprises.

For more information, please contact:
Mr Esa Sudhakar Rao, Project Executive at directornonfarm1@gmail.com

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