Produce of animal husbandry includes livestock and meat; cash payments to producers avoid disallowance under section 40A(3). The Board clarifies that the produce of animal husbandry under rule 6DD(f)(ii) includes livestock, meat, hides and skins; payments otherwise than by crossed cheque or crossed bank draft made to the producer of such products for their purchase are not subject to the twenty percent disallowance under section 40A(3) read with rule 6DD, but the exception does not apply where the seller is not the producer and is merely a trader, broker or middleman.