Paradip, Dec. 27: Dry fish processing activities have come to a grinding halt here with the deadlock continuing over sea-fish auction.

Around 130 dry fish processing units have been closed down in past one week.

Traditional dry fish makers had earlier hit the streets over trawler operators' decision to auction c-grade sea fish in open market.

The dispute arose after the trawler operators refused to sell sea fish, better known as c-grade, which is not in demand in the Odisha market, to local dry fish makers. Such catch is being traded by trawler operators at a higher price to dry fish exporters. This has hit the dry fish units and thousands living on the traditional livelihood source, said Paradip additional district magistrate, Ramakrushna Sahu.

Paradip additional superintendent of police Madhabananda Sahu said the dispute between the dry fish traders' bodies and trawler operators had triggered tension on Friday. "The highway connecting Paradip was blocked by the protesting dry fish traders for nearly six hours. The trucks detained by protesters were later released following police intervention. We are keeping a close watch on the situation," said Sahu.

The administration had tried to settle the dispute last evening. However, it could not be resolved as representatives of dry fish units did not turn up, said an official of Paradip civil administration.

Though it's purely a trade-related dispute, the administration has directed the marine fisheries department to take up the matter and amicably settle it, the official said.

"The trawler operators are well within their rights to sell their catch while keeping profit on their mind," said Sumant Biswal, president, Odisha Trawl Operators' Association.

On the other hand, the dry-fish manufacturers described the decision as arbitrary.

For the past five decades, the trawler operators were selling the c-grade fish to local dry fish makers. The move to export the catch would sound death knell for the dry units in Paradip. Over 40,000 people, who depend on the trade, would be rendered jobless following the arbitrary policy of trawler operators, said a representative of Paradip dry fish manufacturers association, Pravakar Lenka.