The fire broke out at around 10.30 am at the market set up for Diwali at the Ram Lila grounds in the town, 30 kms from the district headquarters.

The blaze completely gutted the market in which 30 to 35 stalls were set up, District Magistrate S B L Shushil said. Initial reports said that the fire started after a child alighted a cracker and one of the stalls caught fire.

Officials said two bodies have been recovered from the mishap site while 12 others sustained burn injuries. Agitated locals pelted stones at the vehicles of police and district officials when they went to the area for rescue operations.The loss due to fire is estimated at be around Rs one crore, officials said.