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A source said the two groups have started preparing for a peaceful protest to draw the attention of the government and security agencies to the ugly development.
The herdsmen were also believed to be behind the increasing robbery attacks on motorists on Ibadan-Iseyin Road in recent times.
Palpable tension has continued to rule the town as people were careful about wherever they went to and returned home before dusk.
Police Public Relations Officer (PPRO) in the state, Mr Kayode Ajisebutu, confirmed the development but said that the Divisional Police Officer (DPO) of Iseyin had held a peace meeting with the angry farmers and hunters, stressing that there should be no cause for tension.