The traders blocked the highway for half an hour, reports said.
"We were ignored by the government. Despite our repeated pleas, no money was paid to us," the protesters said.
Dozens of vehicles were stranded on the highway and commuters consequently faced a lot of inconvenience.
Meanwhile, Station House Officer Pampore Manzoor Ahmad Beigh rushed to the spot and assured the traders that their issue will be raised with the administration, locals said.
After the SHO's, the traders dispersed off peacefully.
Deputy Commissioner Pulwama, Dr Neeraj Kumar told Greater Kashmir that Rs 40 lakh has been released in favour of flood victims of Pampore.