The market takes place at the racecourse every Friday

The new market, which takes place every Friday at Newton Abbot Racecourse, is providing competition for another sale run by Teignbridge District Council every Tuesday.

Now the council has told the racecourse it may invoke a law dating from 1869 which gives it power to prevent any other market being set up within three miles of its own.

People want healthy food and that's what farmers are trying to produce and sell direct to the consumer Robert Gardner, stallholder

"As far as I am concerned, it's working extremely well," said Patrick Masterson, the racecourse's managing director.

"It is hurting nobody."

One of the racecourse stallholders, Robert Gardner, cannot understand the move.

Several options

"I think it's unfair," said Mr Gardner.

"If it wasn't popular people wouldn't come.

"We are providing a service, people want healthy food and that's what farmers are trying to produce and sell direct to the consumer."

But the council said it was still looking into the situation and is stressing that legal action is only one of several options.