New Delhi, Aug. 23 -- The Ministry of Food Processing Industries has sought a five-year extension for its flagship Rs.10,000 crore Pradhan Mantri Formalization of Micro Food Processing Enterprises (PMFME) scheme. Mint explains why the government wants to extend the scheme, launched in FY21, and how more financing could help micro enterprises.

Launched on 29 June 2020 as a centrally sponsored scheme, PMFME was allocated Rs.10,000 crore for FY2020-25. The scheme was later extended through FY2025-26 and subsequently continued until 30 September 2026.

It provides financial, technical and business assistance to entrepreneurs for setting up new units or upgrading existing ones. The expenditure under the scheme is shared between the Centre and...