Fire Services Minister Javed Khan said 13 people have been killed in the fire which has been brought under control.
The dead included a woman, police said, adding that 15 people have been rescued.
The fire was detected at 3.50 AM when the victims were fast asleep, they said.
The injured were rushed to state-run NRS and Medical College hospitals.
Khan told PTI that six persons were brought out from the burning godown in an unconscious state by the firemen who were trying to locate if others were trapped inside.
Firemen and police personnel cordoned off the area to facilitate fire fighting operations.
The cause of the fire and the extent of damage were under investigation, police said.
Khan, who rushed to the spot and personally supervised fire fighting operations, said there was no fire safety arrangement in the market and blamed the authorities for the lapse.
"We will take action against the market authorities for not having any fire safety arrangement", the minister said.
To a question, he said the entire building housing the market was unauthorised and illegal and had come up during the previous Left Front regime.
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