Effectiveness of PM-FME scheme on small food processing enterprises in Andhra Pradesh: A study on ragi (Eleusine coracana) processing units

Abstract:

The present study examined the effectiveness of the Pradhan Mantri Formalisation of Micro Food Processing Enterprises (PM-FME) Scheme on small ragi (Eleusine coracana (L.) Gaertn) processing units in Andhra Pradesh. The specific objectives were to analyze the socio-economic profile of unit owners, assess awareness and utilization of scheme benefits, evaluate the financial and technical support received, measure the impact on production, income, profitability and technology adoption, and identify the major constraints faced by these enterprises. Primary data were collected from 100 ragi processing unit owners through structured interviews and field surveys conducted in selected districts of Andhra Pradesh. The findings revealed that most respondents possessed moderate educational levels, which positively influenced the adoption of improved processing practices, hygiene standards and awareness of government support programs. Beneficiary units reported increased production capacity, better product quality, higher processing efficiency, improved market competitiveness, greater income and enhanced profitability after availing scheme assistance. Financial support in the form of subsidies, credit linkage and machinery assistance contributed significantly to enterprise development. However, major constraints included delays in fund disbursement, inadequate technical training, weak marketing infrastructure, high input costs and limited knowledge of scheme procedures. The study suggests improving access to institutional finance, organizing regular training programs, strengthening market linkages, simplifying procedural requirements and developing common processing and storage facilities to enhance scheme effectiveness and support sustainable enterprise growth in Andhra Pradesh.