Addressing a farmers' convention, Mr Chouhan said, "The currency worth Rs 15,00,000 crore was in circulation before demonetisation. After the demonitisation exercise, the currency in circulation increased to Rs 16,50,000 crore. But notes of Rs 2,000 are missing from the market."
He was referring to news reports of ATMs running out of cash at some places in the state.
"Where these notes of Rs 2,000 denomination are going, who are keeping them out of circulation? Who are the persons creating shortfall of cash? This is a conspiracy to create problems. The government will act tough on this," he said.
He had taken up the issue with the Union Government, Chouhan added.
Hitting out at opposition Congress, Mr Chouhan said, "Last year farmers were instigated in a planned manner....The Congress wants to set the state on fire."
Western Madhya Pradesh had witnessed a violent farmers' agitation over crop prices and loan waiver last June.
"There should be no politics when it comes to the interests of farmers," Mr Chouhan said.