The controversy reportedly emerged after local farmer groups and Hindu organizations opposed the sale of cattle intended for slaughter during the Bakrid festival. In response, Muslim traders and community representatives announced they would stay away from the fair, arguing that restrictions and pressure from activist groups had created an uncertain and hostile trading environment. The development has sharply reduced normal market participation levels.

For dairy and livestock producers, the Hassan cattle fair plays an important economic role, particularly for farmers looking to sell aging animals, non-productive cattle or surplus livestock before the monsoon season. The disruption threatens to affect cash flow for rural households already facing higher feed and production costs. Traders also warned that reduced competition at the market could weaken livestock prices for sellers.

Local authorities have attempted to calm the situation, increasing police deployment and holding discussions with community leaders in an effort to prevent further escalation. Political leaders and farmer representatives have urged both sides to maintain peace and avoid actions that could damage the rural economy. Officials stressed that the cattle fair has historically functioned as a major agricultural marketplace serving multiple communities across the state.