However, nobody was injured in the fire, officials said.
Fire brigade officials said the blaze began at around 12.43 PM and 20 fire engines rushed to the spot and brought it under control after about two hours.
According to the officials, the fire damaged the entire 12,000 sq ft market on the Finik Bazar Road, which is behind the main market.
About 38 stalls inside and 20-22 stalls outside the market were gutted in the fire.
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Besides Mukerjee and other senior divisional officers, Mayor Sovan Chatterjee rushed to the spot.
Locals alleged that fire engines reached the spot late which allowed the blaze to spread. The allegation was dismissed by fire brigade officials who said the congestion in the area made it difficult to reach the place.
Today's fire was the second major one in the New Market area in about a month. A shopping mall in the area had been damaged in a fire last month.