FM Sitharaman says Rs 3,700 crore released to states under PM-FME scheme

Finance Minister Nirmala Sitharaman on Wednesday said under the PM Formalisation of Micro Food Processing Enterprises (PM-FME) scheme, the centre has released over Rs 3,700 crore to states and union territories for implementation. She added that loans worth Rs 11,000 crore were also sanctioned to individual micro food processing units and collectives since the scheme’s launch in 2020.

“Over one lakh entrepreneurs have received training under PM-FME, enhancing their skills and empowering them to grow their businesses,” Sitharaman said while speaking in Karnataka’s Koppal district. The scheme aims to provide financial, technical, and business support to help local entrepreneurs set up or upgrade their units.

“The goal is to enable rural entrepreneurs to transform local crops – whether millets, fruits, or groundnuts – into marketable packaged foods, snacks, or ingredients,” the minister said during her address.

She also launched the PM Dhan Dhaanya Krishi Yojana, announced in the 2025-26 Budget with an outlay of Rs 24,000 crore, covering 100 districts including Koppal. The scheme aims to provide quality seeds, natural farming and water conservation training, improved irrigation, and easier access to markets for farmers.

Sitharaman, who represents Karnataka in the Rajya Sabha said these initiatives will strengthen rural livelihoods and empower farmers through value addition, market linkages, and skill development.

During her visit to Hosapete in Vijayanagara district, Sitharaman interacted with Prime Minister’s Internship Scheme (PMIS) interns and industry representatives, discussing innovation, skill development, and industry collaboration. The union minister is on a four-day visit to Karnataka sinceTuesday, during which she has also inaugurated farmer training centres and CPC for agro processing.At Methagal Village in Koppal, she inaugurated the Farmers’ Training cum Common Facility Centre for Agro Processing, a hub aimed at enhancing fruit processing and marketing. Funded under the MPLAD scheme in collaboration with NABARD, the centre will train Self-Help Groups (SHGs) and farmer producer organisations (FPOs) to add value to mango, guava, and papaya crops through products such as juice, pulp, and dry powder.

The initiative is expected to reduce post-harvest losses, strengthen market linkages, and generate sustainable livelihood opportunities for rural communities, the union minister said. Sitharaman also flagged off the first consignment of processed products from the facility.

The minister also emphasized that under PM-KISAN In Karnataka, over 43 lakh farmers are beneficiaries receiving Rs 6000 per year directly transferred into the bank accounts driving the theme of ‘Vocal for Local.’