If I remember correct the story was about a poor boy (maybe had his own businesses with wood) who went into a Forrest, where some demons or ogres of foxes used the boy.They told the boy they where really hungry and because the boy was very nice and naive he gave them food.the next day the demons said the same thing to the boy only this time the asked for his arm.The boy so kind he gave it. At the end of the story(or near the end) the boy gives his eyes to the demons ,sad although he was,he was happy that the demons where happy
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It doesn’t sound like the tale you described but Google suggests the Straw Millionaire.. Idk how to help ya man.
I may be misremembering or maybe this film took some elements of the story you’re looking for, but it sounds similar to Akira Kurosawa’s Dreams. The first story involves a boy who sees foxes in the forest & there was something about being punished with a knife for viewing them. Later there’s a story about a man who meets demons in the forest and they convince him to become one of them. Again, it’s been awhile since I’ve seen it, I could be misremembering certain pieces. Your description made me think of this tho!
Did you remember where you heard the story from? Was it a book? Anime? TV Show?
Just from your describing it sounds quite close to a famous Buddhist story about one of the Buddha’s previous lives: [Jataka Tale of Prince Mahasattva](http://dunhuangfoundation.us/blog/2018/3/7/jataka-tale-prince-mahasattva). What you could have seen maybe a re-telling of the story for Japanese children, as this story was popular a hundred years ago when Japan was crazy about Dunhuang Caves, and this tory was famously a relief found in the caves. This story was so important to Japanese Buddhism, that a [painting of the story](https://tatsushinarita.wordpress.com/2013/04/01/shashin-shiko-boddhissattas-abandonment-of-himself-to-a-tigress-and-cubs-to-nurture-them/) was part of the Treasure Shrine at a Nara Temple. It’s considered a Japanese national treasure.
Hope this helps a bit.
This is from Fruits Basket the anime/manga!
The tale of the kind traveller that Momiji tells.
Not sure if it’s referencing an actual story in Japan?