India’s organic food sector is witnessing a revolution, and at the heart of this transformation is the PM Formalization of Micro Food Processing Enterprises (PMFME) scheme. Spearheaded by the Director of Industries, MSME Department, Government of Odisha, in collaboration with Palladium as the State Project Management Unit, this scheme is redefining the micro food processing landscape, driving growth, and fostering innovation.
As the global organic food market races towards a staggering $546.97 billion by 2032, India stands out as the fastest-growing market with a projected annual growth rate of 20%. Small businesses are playing a pivotal role in this growth, and the PMFME scheme is providing them with the essential tools and support to thrive in this competitive environment. Through training, capacity-building, seed capital, and credit linkages, the scheme is catalysing a transformation that is positioning India’s micro food processing enterprises as key players in the organic food revolution.
A Wave of Success Stories
The impact of the PMFME scheme is already evident, with over 1500 enterprises benefiting from its support. One standout success story is Chocolaca, an organic chocolate and millet-based snacks brand based in Bhubaneswar. Founded in 2021 by sisters Shanta and Rita, Chocolaca has rapidly emerged as a beacon of innovation in the organic food sector.
Chocolaca specializes in Beans-to-Bar chocolate, using exclusively organic ingredients sourced locally. Despite facing initial challenges, such as limited machinery and marketing reach, the sisters’ determination combined with the PMFME scheme’s support helped them secure a loan of INR 15 lakh. This financial backing, coupled with Palladium’s strategic planning expertise and credit-linked financial assistance, enabled them to acquire advanced machinery, propelling their business to new heights.
In just two years, Chocolaca’s annual turnover skyrocketed from INR 4.97 lakh in FY 2021-22 to an impressive INR 40 lakh by March 2024. The brand’s growth is not just limited to financial success. Chocolaca has obtained all mandatory licenses, including FSSAI, APEDA, ZED, and UDYAM, ensuring their products meet the highest standards of quality and safety.
Nationwide Reach and Global Ambitions
Chocolaca’s products are now available on major online platforms, making them accessible to consumers across India. The brand has also played a significant role in generating employment opportunities, offering food and house allowances to its employees. The sisters’ hard work and dedication have earned them numerous accolades, including the MSME Excellence Award, Odisha Millet Innovation Challenge Award, and the Woman Leadership Award by Tech Observer and Deloitte.
With the domestic market firmly in their grasp, Shanta and Rita are now setting their sights on international expansion, starting with Dubai. This global ambition reflects the broader vision of the PMFME scheme, which is to empower grassroots food processors and amplify local products on the world stage.
A Broader Impact
The success of Chocolaca is just one example of how the PMFME scheme is making a difference. According to Amit Patjoshi, CEO of Palladium India, the scheme has facilitated over INR 116 crore in credit-linked support to more than 1500 enterprises. Additionally, over 8900 beneficiaries have received entrepreneurship training, and more than 23,000 Self-Help Group beneficiaries have benefited from seed capital support.
Aligned with the Atmanirbhar Bharat Abhiyan, the PMFME scheme is dedicated to driving growth and innovation in India’s micro food processing sector. It showcases the potential of small businesses to not only thrive in the domestic market but also to play a pivotal role in the global organic food revolution.
Conclusion
As the global demand for organic food continues to rise, India’s micro food processing enterprises are well-positioned to lead the charge. With the support of the PMFME scheme, these businesses are not only transforming the local food landscape but are also making significant strides on the global stage. The success of Chocolaca is a testament to the scheme’s impact and a glimpse of the bright future that lies ahead for India’s organic food sector.
Read more: Stanford Alum’s BuiltX Sustainable Design & Construction
