Fire brigade officials said the blaze spread over the 10,000 sq ft area of mill godown, where jute materials were stocked.
Four fire tenders were fighting the flames which were first spotted at 9:55 AM, the officials said.
The extent of damage was yet to be ascertained.
The fire, which was suspected to have been caused by short circuit, partly affected traffic in nearby state highway.
There was no casualty or injury, the officials said.
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