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Bellary (Karnataka): As the CNN-IBN Budget Caravan enters Karnataka, its first stop is Bellary, which has one of India's richest iron-ore deposits. Vivin Mathew tells us the story about farmers in the area who are moving to the iron-ore industry because of drought in the area.

The road to Bellary should be called the road to perdition. It takes five hours to travel just 150 kms.

The bad state of the roads is surprising, considering that Bellary is home to 45 iron-ore mines that annually produce about 30 million tonnes of some of the world's best quality iron-ore.

Besides, connectivity is of paramount importance to an industry that exports most of its produce.

As a result of the insatiable Chinese demand, Bellary's iron-ore industry is booming and the prices have shot up in the last three years.

President, Mining Engineers Association of India, Meda Venkataiah, says, "As on today, we have an advantage of proximity to China and Japan."

Bellary was once a completely agrarian economy, but that changed once red gold was discovered. And after ten years of drought, more farmers have begun to move into the iron-ore industry.

Lingappa, who was earlier a farmer, decided to switch to the iron-ore industry three years ago. "What can we do. There has been no rain here for so many years. We have no other option," he says.

He's not the only farmer who has made the change. Average earnings of about Rs.1,500 per week, per person in the iron-ore industry versus unsure income while farming - it is an easy choice to make.

Unoffical estimates suggest over 5000 people have made the switch in the last three years. And with about Rs. 35,000 crore of investment expected in new iron-ore mines in the area, it looks like more drought hit farmers of Bellary will be changing profession.