Yes, sir I have been to villages. Very few farmers sell their cattle and the primary purpose of buying a cattle is not for selling it, but using it. Our villagers except a few are not so hard up either. Plus the govt extends all kind of agriculture loans at almost 0% interest. So pls do not spend sleepless nights worrying about our farmers.
The standard procedure would be :
-buy cow
-use cow
-when useful life is over, sell cow
With this slaughter ban, selling cow gives lesser money due to price of useless cow dropping, because of it's uselessness (can no longer slaughter).
Farmers' profits will fall. Investment in new cows will be reduced (should result in drop in new cow prices as well due to low demand but that depends on price elasticity of milk).
There are some idiots here saying that the drop in new cow prices is a good thing, because now poor people can buy them. Yes they can buy the cow, can they afford to operate the cow now that the residual value of the cow has fallen drastically ?
Let me explain further. Say brand new cow used to sell for 50,000 and gave 5 yrs of use. Useless cow sold for 30,000. So if I buy a cow today for 50k and use it for 5yrs and sell it for 30k, I have consumed 20k worth of cow. This is my cow cost which will be divided over every litre of milk that it produced. Now say useless cow price has suddenly dropped to 25k. Now I will be consuming 25k worth of cow. Now this 25k will be divided by all the litres of milk it produced and added to the price of milk.
End result, milk prices will rise.
Unless they can find a use for the now-useless cow (slaughter ban), India will face higher milk prices, maybe even acute milk shortages(if they try controlling milk prices)...The entire dairy industry could get messed up.
Let me further simplify if there's someone who still doesn't understand. Revenues from a cow come from two sources, milk and meat. They've put a complete ban on one major source. Now all of the burden is on milk. Subsequently, milk prices will have to be raised in order to compensate for revenues lost due to slaughter ban.