What happened

Prime Minister Narendra Modi shared an article written by Union Minister Chirag Paswan on the PM Formalisation of Micro Food Processing Enterprises (PMFME) Scheme. The Prime Minister’s message linked the scheme to grassroots entrepreneurship, especially among women, and to the formalisation of micro food-processing units through affordable finance, technology, branding and market linkages.

The stated policy idea is clear: micro food-processing enterprises should not remain trapped in low-productivity informality. Instead, the PMFME Scheme is being presented as a support framework that can help local producers become job creators, strengthen rural economies and contribute to Aatmanirbhar Bharat.

Background and earlier position

India’s food-processing sector has long had a large informal base, with many very small units operating with limited finance, weak branding and poor market access. Formalisation matters because it can improve productivity, expand scale, and connect producers to wider value chains.

The PMFME Scheme was introduced by the Union government to support micro food-processing enterprises through a package of financial and non-financial interventions. Its policy logic is to raise competitiveness at the grassroots, where a large share of small food-processing activity takes place.