As I understand it, the reasoning for the law is simply compassion and understanding that birds were not meant to live in cages
http://pets.indiatimes.com/articleshow. ... =669079351). But people still buy them and still cage them, of course - and they don't even use large cages, either... Unfortunately for the birds, the fad of keeping parrots as pets and training them has hit Asia and Africa pretty hard and the greatest majority of the birds that end up as pets there are poached from the wild.
I don't think the women who were selling them were part of any illegal poaching operation that ships them outside the country, I think they were just selling them to whoever happened on the road.