Context: Uttar Pradesh has emerged as the top-performing state in the implementation of the Prime Minister Formalization of Micro Food Processing Enterprises (PMFME) Scheme, marking a significant achievement for the state’s food processing sector.
Achievements of UP
- Uttar Pradesh currently holds the fastest approval timeline for PMFME applications in the country.
- Average approval time: 100 days.
- Strike rate of approved proposals: 98%.
- Fund Utilization:
- As per data shared by the Food Processing Department:
- ₹252.89 crore has already been utilized out of the allocated ₹311.71 crore for FY 2025–26.
- As per data shared by the Food Processing Department:
- Enhanced Credit Access: Banks across the state have sanctioned term loans worth more than 2,000 crore under the PMFME scheme, significantly supporting the growth of micro food-processing enterprises.
- An average term loan of Rs 10 lakh per unit, and an average subsidy approval of 24 lakh have been allocated under the scheme.
Recent UP government Initiatives to promote Food processing Sector:
- Industry-Academia Collaboration: In November 2025, Directorate of food processing, UP govt signed MoU with Babasaheb Bhimrao Ambedkar University (BBAU) to nurture professionals for the food industry.
- Amethi centre of BBAU is set to become a hub for the local food processing industry.
- Food processing units at the grassroots level: The government aims to establish more than 1,000 units in each district, ensuring at least one food processing unit in every village.
- Awareness Generation: TheFood Processing Department is preparing plan to organiseawareness camps in villages to encourage residents to establish units, publicise benefits available under the Food Processing Industry Policy 2023 and PMFME Scheme.
- Food processing Units in UP: According to the Food Processing Department, approximately 75,000 food processing units are currently established in the state, of which 428 units have been established under the Food Processing Industry Policy.
