PMFME Scheme in 2026: Term Ended 30 September — What the 35% Subsidy Covered and Where It Stands

PMFME, the central scheme that paid micro food-processing units a 35% credit-linked subsidy of up to ₹10 lakh, ended its extended term on 30 September 2026, and no continuation had been announced when we checked on 20 October 2026. Until one is notified, treat new applications as closed and confirm on the PMFME portal or with your State Nodal Agency before you prepare one. In Haryana, the State's Agri-Business and Food Processing Policy 2026 is open and pays 25% or more of eligible capital expenditure.

Sources checked: 20 October 2026

Facts checked on 20 October 2026 against the PMFME portal and scheme guidelines (pmfme.mofpi.gov.in), the PIB release of 22 May 2026 and the Haryana food-processing policy gazette.

Where the scheme stands: PMFME was approved for 2020-21 to 2024-25 and extended until September 2026. On 20 October 2026 no further continuation had been announced. The rest of this guide describes the scheme as it ran; our PMFME scheme page will show the decision once it is notified.

Key facts

Item	PMFME (as it ran to 30 September 2026)
Status (20 Oct 2026)	Term ended; awaiting extension — treat as closed
Subsidy	35% of eligible project cost, credit-linked
Ceiling	₹10 lakh per unit
Own contribution	At least 10% of project cost; the rest a bank loan
Seed capital	₹40,000 per self-help-group member
Who	Micro food-processing units: individuals, proprietorships, partnerships, FPOs, SHGs, producer co-operatives
New units	Only for the district's ODOP product
Release	Into a subsidy account, adjusted against the loan after three years if the loan is standard and the unit running
Ministry	Ministry of Food Processing Industries, through State Nodal Agencies

Is PMFME open for new applications?

No — treat new applications as closed until a continuation is notified. The scheme's term, extended to September 2026, has ended, and neither the PMFME portal nor the Ministry had announced an extension when we checked on 20 October 2026.

What did PMFME pay, and to whom?

PMFME paid a 35% credit-linked capital subsidy on the eligible project cost, up to ₹10 lakh per unit, plus seed capital of ₹40,000 per self-help-group member for working capital and small tools, and support for branding, marketing and common infrastructure for FPOs, SHGs and producer co-operatives.

It was for micro food-processing units — flour and spice mills, pickle and papad makers, bakeries, dairy, meat and fish processors — owned by individuals, proprietorships, partnerships, FPOs, SHGs or producer co-operatives. The owner contributed at least 10% of the project cost and a bank lent the rest.

• New units, individual or group, were supported only for the district's One District One Product (ODOP).
• Existing individual units were preferred for ODOP products, but units making other products were also supported.

How was the subsidy released?

Through the bank. The applicant applied on the PMFME portal, a District Resource Person helped prepare the project report and loan application, and the bank appraised and sanctioned the loan. The grant was then placed in a subsidy account linked to the loan and adjusted against it after three years, provided the loan was standard and the unit was running.

What can a Haryana food unit use instead?

The Haryana Agri-Business and Food Processing Policy 2026 is open for units starting commercial production between 29 May 2026 and 28 May 2031:

• 25% of eligible capital expenditure for new, expanding or diversifying food units, up to ₹2 crore in Core and Intermediate Areas and ₹4 crore in Sub-Prime and Prime/Focus Areas.
• Higher rates for backward and forward linkages (35%), integrated cold chain (35–45%) and rural primary processing and packaging centres (45%).
• A 15% State top-up on projects approved under PMFME after the policy was notified, with the total capped at 50% of project cost — useful if PMFME reopens.

Plain flour, suji or maida milling and plain grading of grain are on the policy's negative list. The notified text does not set out an application route, so confirm the claim procedure with the Directorate of MSME, Haryana before you spend.

A food-unit loan can also be backed by a CGTMSE guarantee so collateral is not needed, and MUDRA may suit very small units.

Preparing for a reopening

• A realistic project report — capacity, raw-material sourcing and sales assumptions a bank officer finds believable. The DPR Builder produces a bank-format draft.
• Registrations in place — FSSAI registration or licence, Udyam and, where turnover requires it, GST.
• Clean quotations for every machine in the project cost.

Check which open schemes your unit matches, compare PMEGP, CGTMSE and MUDRA, or ask our expert team about your food-processing project through our subsidy and DPR service.