Relocation of Palayam market in Kozhikode moves ahead despite traders’ opposition

Despite opposition from traders, the Kozhikode Corporation has begun the process of shifting the Palayam vegetable and fruit market to the new market complex at Kalluthankadavu (New Palayam Market), citing concerns over the structural safety of the ageing buildings at the existing market.

The move follows a recent Corporation council decision to demolish the existing market. The Corporation has begun issuing notices asking traders to take possession of the shops allotted to them at the new complex. The notices require traders to inform the Corporation of their decision within 10 days of receipt. Under the agreement between the Corporation and the Kalluthankadavu Area Development Company (KADCO), the shops may be allotted to other applicants if the traders decline them.

Deputy Mayor S. Jayasree said the Corporation was proceeding with the formalities in accordance with the council’s decision.

“We have held talks with traders, including those opposed to the relocation. A meeting of district-level political leaders is scheduled for next week. Traders were invited to participate in the draw of lots but some did not turn up. The letters being sent now are part of the official procedure, and further decisions will be taken thereafter,” she said.

However, Palayam Vegetable Market Coordination Committee chairperson P.K. Krishnadas said traders would continue to oppose the relocation and urged the Corporation to renovate the existing market.

“We will not change our decision to oppose the relocation, as the new building lacks the facilities we need. We made this clear at a meeting convened by the Corporation last month. We have urged the Corporation to address the problems with the existing building and allow us to continue operating here,” he said.

The Corporation held meetings with traders in August and September to discuss the relocation, but no consensus could be reached. Only a small number of wholesale traders attended the meeting convened by Mayor O. Sadasivan in August and expressed their willingness to move, provided the necessary facilities were arranged.

The traders also raised concerns about the location of some of the shops allotted to them, demanding that those on the upper floors be shifted to the ground floor. They said the allocation could affect their business and impede the movement of goods vehicles.

The new market complex at Kalluthankadavu in Kozhikode.
| Photo Credit:
K. Ragesh

The new market complex was inaugurated by then Chief Minister Pinarayi Vijayan last year. The Corporation had earlier indicated that traders would move to the complex in January 2026, but the relocation did not take place amid opposition from traders, who cited inadequate facilities.

There are 153 licensed traders at the existing Corporation-owned Palayam market, while the new complex has around 380 shops. Built by KADCO under the build-operate-transfer model on a 5.5-acre plot at a cost of around ₹100 crore, the 3.5-lakh-square-foot complex is among the largest markets of its kind in the State. KADCO has been entrusted with its operation for 35 years.

The Corporation plans to relocate all licensed traders from Palayam to Kalluthankadavu. Once the relocation is completed, KADCO will be allowed to rent out the remaining shops.