Health officials had linked the origin of the virus to dead fruit bats found in a well at a house in Kerala's Kozhikode, where four members of the family died of the rare Nipah virus.
Fruit sellers say their sales have fallen sharply due to the Nipah virus scare. "Even though we are selling in half of the usual price, no one is willing to buy," Sulfi, a fruit-seller in Thiruvananthapuram, told news agency ANI.
Vendors say it seems customers are assuming that the bats could have contaminated the fruit that they are selling.
Sales of local varieties of mangoes have fallen at a time when it's the peak season of the popular fruit, though mangoes brought from other states appear to be selling well, vendors say.
The World Health Organisation has named Nipah as one of the eight priority diseases that could cause a global epidemic, alongside the likes of Ebola and Zika.
The WHO, however, has not issued any specific advice to countries that have not been affected by the Nipah but has asked them to enhance the level of preparedness. The United Arab Emirates has asked its citizens to put off unnecessary travel to Kerala.