The Madhya Pradesh government has approved the 'Kavach Scheme', a farmer-centric initiative aimed at economically empowering farmers, strengthening the agricultural value-addition chain, and improving access to institutional finance.
The 'Kavach Scheme' is a significant step by the Madhya Pradesh government in support of farmers, who are deemed as the most important link in the rural economy. This initiative seeks to strengthen the agricultural value-addition chain from farm to market, expand irrigation capacity, promote modern and advanced agricultural technologies, and natural and organic farming, and improve access to institutional finance among other objectives.
The scheme aims to provide relief to affected farmers and reconnect them with the institutional credit system. The State Government announced this decision during its Farmer Welfare Year, 2026.
Chief Minister Dr. Mohan Yadav presided over a cabinet meeting on August 4, 2026, at which the 'Kavach Scheme' was approved by the Cooperative Department as a farmer-centric initiative. Around 5,000 farmers associated with cooperative societies will benefit from this scheme. These farmers had been unable to avail themselves of government schemes and new credit facilities due to pending investigations into irregularities in their loan accounts.
Under the 'Kavach Scheme', a special fund of up to ₹50 crore will be created at the Apex Bank and District Cooperative Banks levels. The State Government has also decided to provide one-time equity assistance of ₹25 crore in the interest of farmers.
The objective of this scheme is to make farmers economically empowered and provide their hard work with a secure financial foundation. The government aims to ensure that farmers receive timely credit, agricultural inputs, and the benefits of all farmer-oriented schemes.
Source:
MPInfo English News
