He claims that if he told the truth, people would stop giving alms. This can be compared to how beggars often dress and complain about being hungry for days.
In some larger cities, criminal gangs control groups of beggars. These gangs provide the beggars with a makeover and drop them off at strategic traffic points. The beggars are trained to cry convincingly so that people feel sympathy for them.
At the end of the day, the gang leader collects a large commission from the day's earnings.