Jammu Kashmir: 680 Micro Food Units Approved in 2024–25, Central Funding Lags | Kashmir Life

SRINAGAR: Jammu and Kashmir recorded a sharp rise in central assistance under the Pradhan Mantri Formalisation of Micro Food Processing Enterprises (PMFME) scheme in 2024–25, but cumulative releases remain well short of the state’s approved project implementation plan (PIP). The Centre released Rs 25.75 crore to the Union territory in 2024–25, bringing total central disbursements for Jammu and Kashmir under PMFME from FY 2020–21 to FY 2024–25 to Rs 40.28 crore.

Applications and approvals for individual micro food processing units in Jammu and Kashmir rose substantially over the four years. The Union territory received 1,056 applications in 2024–25, of which 680 were approved and 191 rejected; approvals rose from 35 in 2021–22 to 680 in 2024–25. Approval rates improved from about 16.9 per cent in 2021–22 to 64.4 per cent in 2024–25.

By contrast, the PIP approved for Jammu and Kashmir over the five financial years 2020–21 to 2024–25 totals Rs 92.63 crore (zero in 2020–21; Rs 17.11 crore in 2021–22; Rs 25.96 crore in 2022–23; Rs 25.28 crore in 2023–24; and Rs 24.28 crore in 2024–25). That means central releases of Rs 40.28 crore cover less than half of the PIP approved for the Union territory in the period under review.

The Ministry’s returns show that loans and subsidies under PMFME are paid only after bank sanction; district-level committees recommend projects, and banks decide loan sanctions under their lending norms. The ministry also deploys district resource persons to provide hand-holding support on DPR preparation, bank linkage and regulatory compliance.

State figures show a rising demand for formalisation in Kashmir’s food sector: applications received for micro units increased year on year from 207 (2021–22) to 1,056 (2024–25), with corresponding increases in sanctioned units. Rejections also rose in earlier years (notably 320 rejections in 2023–24) before moderating in 2024–25, reflecting both higher throughput and continuing screening by implementing agencies and lending banks.

The PMFME scheme has sanctioned common infrastructure and incubation support at scale. As of December 31, 2025, 108 common facility centres have been sanctioned nationally, and 76 incubation-centre proposals have been approved with a grant-in-aid amounting to Rs 208 crore. Across States and UTs the Centre and State share released for PMFME in the five years to 2024–25 totals Rs 4,111.61 crore.