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Sullia: The fish market run by the Sullia Town Panchayat, which was once crowded with seafood lovers, has remained closed for the last 40 days due to issues related to the auction rate.

According to officials and traders, a government rule requiring this year’s tender amount to be at least 10 per cent higher than last year’s has become the main hurdle in restarting operations at the market.

While Town Panchayat officials said they are bound to follow the rule, traders argued that running the market at such a high amount is not possible under the current business conditions. As a result, the tender process has not been completed and the market has remained shut.

The fish market was constructed around 11 years ago for the Sullia Town Panchayat with support from the Karnataka government, the National Fisheries Development Board and the Fisheries Department.

The market was built at a cost of around Rs 68 lakh. Later, additional works including construction of a water tank, repair of the drainage tank and painting works were carried out at an extra cost of nearly Rs 5 lakh.

During the previous term, the market was auctioned for Rs 14 lakh. As per government rules, this year’s tender had to be called for 10 per cent more than the previous amount. However, traders did not show interest.

Though tenders were invited twice, the highest bid did not cross Rs 7.5 lakh. The Town Panchayat is now preparing to invite tenders for the third time. If that also fails, the matter will be placed before the district administration for further action.

In the initial years, all six stalls in the market were active and business was strong. The market had become a major centre for fish purchases in Sullia and used to attract large crowds.

The auction amount, which was initially around Rs 10 lakh, increased sharply due to competition among traders and reached Rs 26 lakh during 2022-23.

However, the situation later changed as new fish shops opened in areas including Paichar. Many customers shifted to those outlets, leading to a gradual decline in business at the Town Panchayat market.

As a result, only two out of the six stalls remained operational, while the remaining stalls stayed vacant. Traders reportedly suffered losses due to the fall in business.

“Last year, the fish market was auctioned for Rs 14 lakh. According to government rules, this year’s tender should be 10 per cent higher. However, even after calling tenders twice, the bid amount has not crossed Rs 7.5 lakh. One more tender will be invited. If bids still do not meet the required amount, a letter will be sent to the Deputy Commissioner seeking further directions,” said Basavaraj, Chief Officer of the Sullia Town Panchayat.