Assam has received the Best Performing State Award under the Pradhan Mantri Formalisation of Micro Food Processing Enterprises Scheme for its implementation of the programme through the Assam State Rural Livelihoods Mission and Assam State Urban Livelihoods Mission.

The award recognises Assam’s efforts to expand credit access, seed capital and enterprise support for small food-processing businesses, particularly those linked to self-help groups.

Assam’s Performance

• 4,798 credit-linked loans amounting to ₹65.58 crore have been sanctioned under the scheme in Assam.
• The Assam State Rural Livelihoods Mission has provided ₹94.51 crore in seed capital to 29,994 self-help group members.
• The Assam State Urban Livelihoods Mission has extended ₹20.29 crore to 7,350 self-help group members.
• The initiative strengthens the transition of informal household-level food businesses into more formal, financially viable and market-linked enterprises.

About the PM Formalisation of Micro Food Processing Enterprises Scheme

• The scheme is a Centrally Sponsored Scheme under the Ministry of Food Processing Industries and was launched in 2020 as part of the Atmanirbhar Bharat initiative. 
• The Scheme is to be implemented from 2020–21 to 2025–26, with a total financial outlay of ₹10,000 crore.
• It aims to formalise and strengthen micro food-processing enterprises across the country  by providing financial, technical and business support. Its important components include:
  • Individual micro food-processing units can receive credit-linked capital subsidy of 35% of eligible project cost, subject to a maximum of ₹10 lakh per unit.
  • Self-help groups can receive seed capital of ₹40,000 per member for working capital and purchase of small tools.
  • The scheme promotes the One District One Product approach, through branding, marketing, training and value addition.
    • The ODOP Initiative has identified a total of 1102 products from 761 districts across the country.
• The scheme recently surpassed 2 lakh credit-linked beneficiaries.

Why Is It Important for Assam?

Food processing can help Assam convert its agricultural and horticultural produce into higher-value products, reduce post-harvest losses and create employment close to rural communities.

The involvement of rural and urban livelihood missions is particularly significant because self-help groups can act as local platforms for entrepreneurship, credit access, training and collective marketing.

Thus, the award reflects more than financial assistance—it demonstrates how women-led and community-based enterprises can connect agriculture with local manufacturing, value addition and rural livelihoods.

Exam Hook

Prelims Facts: PMFME → Ministry of Food Processing Industries → formalisation of micro food-processing enterprises → 35% credit-linked subsidy → ₹40,000 seed capital per eligible self-help group member → One District One Product.

Prelims Question: Consider the following statements about the Pradhan Mantri Formalisation of Micro Food Processing Enterprises Scheme:

1. It supports the formalisation and upgradation of micro food-processing enterprises.
2. It provides 35% credit-linked capital subsidy to eligible individual units, subject to a prescribed ceiling.
3. It provides seed capital to self-help group members engaged in food processing.
4. It promotes the One District One Product approach.

Which of the statements given above are correct?

Answer: 1, 2, 3 and 4.