Additional subsidy boosts small entrepreneurs with credit support across rural Karnataka
Karnataka has emerged as a frontrunner in implementing the Prime Minister’s Micro Food Processing Industries Regulation (PMFME) scheme, achieving remarkable progress in the current financial year. The state government has announced an additional 15% subsidy to support small entrepreneurs, enabling them to access credit-linked subsidies up to a maximum of ₹15 lakh.
Agriculture Minister N. Cheluvarayaswamy, along with Karnataka State Agricultural Produce Processing and Export Corporation Limited (KAPPEC) Managing Director C.N. Shivaprakash, has been credited for driving the scheme’s success. Farmers and entrepreneurs across the state have acknowledged Shivaprakash’s consistent efforts as instrumental in strengthening the rural economy and creating new employment opportunities, particularly for youth.
By the end of August 2025, a total of 704 loans had been sanctioned under the scheme, amounting to an investment of ₹109.24 crore. With this, Karnataka has surpassed states like Tamil Nadu, Uttar Pradesh, and Maharashtra in loan disbursements, securing the top position nationally.
To ensure effective implementation, KAPPEC has rolled out district-wise awareness programmes, appointed district resource persons, and established helpline centres. These measures aim to guide beneficiaries and streamline access to financial support.
Thanks to this coordinated approach, the state is rapidly moving toward its ambitious goal of establishing 5,000 micro food processing enterprises. The progress has been hailed as transformative for Karnataka’s agriculture sector, opening new avenues for rural entrepreneurship and giving a significant boost to the food processing industry.
