Regarding cash purchase limit for purchase from interstate farmers.

Is 2 lakhs per day limit, or i can pay to multiple farmers following 2 lakhs per day limit payment to single farmer.

Its per farmer per day per event... Less then 2 lakhs can be given in cash.

Section 269ST prohibits any person to receive an amount of Rs.2 lakh and above in cash:

• In aggregate from a person in a day, or 
• In a single transaction, or 
• In respect of transactions relating to one event or occasion from a person. 

This section will not apply to-

• Government
• any banking company
• post office savings bank
• co-operative bank
• other persons/receipts as may be notified
• Transactions referred to in section 269SS (attracted when we accept loan from any person) will be excluded from the scope of the new section 269ST.

However there is a exception to section 271DA; According to section 271DA if person proves that there were good and sufficient reasons for contravention of section 269ST then no person shall be liable.

However, in case you are making payment of/above 2,00,000 to any farmer, Provisions of new Section 269ST will be applicable and Penalty can be levied on farmer for accepting payment above 2,00,000 in cash since no exemption is given to farmers under Section 269ST. (refer:            Circular No. 27/2017 Dated 3rd November 2017)