Advanced International Journal for Research

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A Study of the Impact of The PMFME Scheme On the Growth and Formalization of Micro Food Processing Enterprises in Pune District

Author(s) Pradnya Bhojane, Dr. Sharayu Bhakare
Country India
Abstract This inquiry evaluates the longitudinal consequences of the Pradhan Mantri Formalisation of Micro Food Processing Enterprises (PMFME) initiative within the Pune district from 2015 to 2025. It examines the structural transition of unorganized food artisans from a condition of productive invisibility to documented institutional recognition. Historically, these micro-scale producers encountered systematic exclusion from formal credit markets and regulatory frame-works due to administrative complexity and high transaction costs. Utilizing a qualitative-historical framework, the research synthesizes archival government records and parliamentary responses to delineate the evolving food policy environment in Maharashtra. The investigation identifies that the convergence of credit-linked capital subsidies and One District One Product (ODOP) designations effectively lowered the thresholds for formalization. Statistical evalua-tions confirm that the annual rate of enterprise registration approximately doubled following the scheme's implementation in June 2020. In Pune district, 1,386 approved entities achieved an employment multiplier of 3.0 per enterprise, indicating substantial productive growth and equipment upgradation beyond simple compliance. Moreover, the seed capital component suc-cessfully integrated women-led self-help groups who were previously marginalized by tradi-tional individual asset ownership requirements. The results verify a significant association be-tween scheme participation and enhanced market access, yielding a moderate-to-strong statisti-cal effect as measured by Cramér's V. The research concludes that the PMFME scheme repre-sents a decisive watershed in food policy economics by addressing capital, identity, and market linkage simultaneously rather than in isolation. These findings provide a strategic roadmap for future policy refinement within high-density agro-industrial clusters such as the Pune metro-politan region. The metamorphosis of the informal sector underscores the necessity for spatial-ly differentiated implementation strategies that leverage existing manufacturing infrastruc-tures. Ultimately, the study confirms that targeted institutional support can accelerate the for-malization of micro-enterprise ecosystems within a compressed five-year timeline.
Keywords PMFME, micro food processing, formalization, Pune district, credit-linked subsidy, MSME, food entrepreneurship, policy impact
Field Business Administration
Published In Volume 6, Issue 6, November-December 2025
Published On 2025-12-02
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E-ISSN 3048-7641
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