The government today denied that the farmers have distress sale of their agricultural produce including vegetables in the rural areas due to demonetisation. There is no situation that warranted payment of compensation to the farmers.<br/><br/>Replying to a question in Lok Sabha, Agricultural and Farmers Welfare Minister Radha Mohan Singh said price is determined by demand and supply and government has in place a mechanism to protect farmers from distress sale by procuring agricultural produce through central and state agencies. <br/><br/>He said the payments to the farmers are made strictly through Real Time Gross Settlement, National Electronic Fund Transfer and account payee cheque by the procuring agencies. On the question of agriculture labourers have been idle or retrenched due to demonetisation, the Minister said no retrenchment of the agriculture labourers has been reported. <br/><br/>He said the total area sown under five major crop categories in Rabi was higher than the same period last year.