As Premier Gladys Berejiklian unveiled plans for the long-awaited redevelopment of the Sydney Fish Market on Sunday, some fishmongers privately wondered whether their businesses would survive to see the new $250 million facility built.

Behind the scenes, a dispute has been playing out between the market and seafood buyers over a new 2 per cent fee, which will apply to all seafood bought through the morning auction, as well as direct sales, from Saturday.

Businesses expected to be hardest-hit by the fee are those that face additional transport costs in supplying regional and rural NSW, while many local businesses that trade directly from the Sydney Fish Market will be unaffected.

Canberra-based John Fragopoulos​, who commutes to the market twice a week to supply his three shops as well as clubs and pubs in the Canberra area, said the fee would push his family-run business to breaking point.