The Subsidy Scheme for MSMEs in Food Processing is a crucial initiative by the Indian government to support small and micro-enterprises in the food sector, aimed at encouraging modernization, formalization, and productivity in the industry. Here’s an overview of the main subsidy schemes available for MSMEs in food processing:

1. PM Formalisation of Micro Food Processing Enterprises (PMFME) Scheme

• Objective: Launched under the Atmanirbhar Bharat initiative, the PMFME scheme aims to formalize and upgrade micro food processing enterprises, providing financial, technical, and business support.
• Subsidy Rate: The scheme offers a credit-linked capital subsidy of 35% of the eligible project cost, capped at ₹10 lakh per unit for individual micro-enterprises. For Farmer Producer Organizations (FPOs), Self-Help Groups (SHGs), and cooperatives, the subsidy rate remains the same, applying to the entire eligible project cost.
• Eligibility: This scheme supports individuals, FPOs, SHGs, and cooperatives involved in micro food processing. A minimum 10% contribution from the beneficiary is required, with the rest funded through loans.
• Scope: Apart from financial support, PMFME also focuses on providing common infrastructure like processing facilities, laboratories, and storage options, as well as branding and marketing assistance to integrate small enterprises into the organized sector.
• Application Process: Applicants can apply online via the PMFME portal, which facilitates the process and connects eligible businesses with the resources needed for modernization​myScheme​India Government​SBI.

2. Pradhan Mantri Kisan SAMPADA Yojana (PMKSY)

• Objective: PMKSY is designed to develop infrastructure for agro-processing and to reduce food wastage. This umbrella scheme encompasses multiple sub-schemes like the Creation of Infrastructure for Agro-Processing Clusters and Cold Chain Infrastructure.
• Subsidy Rate: PMKSY provides financial assistance of up to 50% of the total project cost in difficult areas (e.g., North-East, SC/ST communities) and 35% in other areas.
• Eligible Activities: Sectors eligible under PMKSY include fruits and vegetable processing, dairy, meat and poultry processing, grains and pulses, and other agri-based products. Specific support is available for cold chain projects, mega food parks, and food processing clusters​TaxGuru.

3. Production Linked Incentive Scheme for Food Processing Industry (PLISFPI)

• Objective: PLISFPI aims to promote large-scale manufacturing and branding of Indian food products globally, encouraging MSMEs in the food sector to become globally competitive.
• Incentive Structure: Under PLISFPI, selected MSMEs receive financial incentives based on production volumes and incremental sales growth. The scheme focuses on supporting businesses that produce high-demand processed foods and promotes export-ready brands.
• Scope: PLISFPI not only incentivizes increased production but also supports infrastructural investments to scale MSME operations, fostering India’s competitiveness in the global food processing market​Ministry of Food Processing Industries.

These schemes collectively assist MSMEs in the food processing sector by providing substantial financial support, technical resources, and infrastructure. This holistic approach aims to enhance productivity, reduce food waste, and improve access to global markets, ultimately contributing to economic growth and employment in rural and urban regions. For more details on each scheme, MSMEs can explore resources through the Ministry of Food Processing Industries (MOFPI website)​