Cash payment to farmers?

You cannot make payment 20000 rupees in cash at a single transaction in a day u/s 269SS.
A person cannot accept loan or deposit or any other specified sum (specified sum here refers to an advance or otherwise, in relation to the transfer of any immovable property) from another person otherwise than by an account payee cheque or account payee bank draft or use of electronic clearing system through a bank account, if –
Amount of loan or deposit or specified sum is Rs. 20,000 or more.

Please see related rules.

As per the section 269ss exemption of this section - the indivisual having the agriculture income only and received the loan or deposit in the excess of 20000 or more from indivisule who also having agriculture income only then section 269ss not taken force into it. so, here the payment to farmers in the excess of 20000 is not disallowed by the income tax authorities.

269SS is for loan/deposits.

what is your exact query.

following cash payment is allowed without limit under rule 6DD.

where the payment is made for the purchase of—

(i)		agricultural or forest produce; or
(ii)		the produce of animal husbandry (including livestock, meat, hides and skins) or dairy or poultry farming; or
(iii)		fish or fish products; or
(iv)		the products of horticulture or apiculture,

to the cultivator, grower or producer of such articles, produce or products;