How to create user from django shell

When i create user from django-admin user password's are encrypted. but when i create user from django shell user-pasword is saved in plain text. Example :

{
    "date_joined": "2013-08-28T04:22:56.322185",
    "email": "",
    "first_name": "",
    "id": 5,
    "is_active": true,
    "is_staff": false,
    "is_superuser": false,
    "last_login": "2013-08-28T04:22:56.322134",
    "last_name": "",
    "password": "pbkdf2_sha256$10000$iGKbck9CED0b$6hWrKYiMPNGKhcfPVGal2YP4LkuP3Qwem+2ydswWACk=",
    "resource_uri": "/api/v1/user/5/",
    "username": "user4"
},
{
    "date_joined": "2013-08-29T01:15:36.414887",
    "email": "test@ophio",
    "first_name": "",
    "id": 6,
    "is_active": true,
    "is_staff": true,
    "is_superuser": true,
    "last_login": "2013-08-29T01:15:36.414807",
    "last_name": "",
    "password": "123test",
    "resource_uri": "/api/v1/user/6/",
    "username": "test3"
} 

I am trying to make REST style api for a simple blog app : when i try to insert a user by post request [ by passing JSON ] password is saved as plain text. how to override this behaviour.

You should not create the user via the normal User(...) syntax, as others have suggested. You should always use User.objects.create_user(), which takes care of setting the password properly.

user@host> manage.py shell
>>> from django.contrib.auth.models import User
>>> user=User.objects.create_user('foo', password='bar')
>>> user.is_superuser=True
>>> user.is_staff=True
>>> user.save()