52-year-old Ghulam Rasool Ganai was shot at and injured by terrorists at his shop in Mattan area of Anantnag, a police official said. He said Ganai died due to his injuries while being shifted to a hospital.
This was the third killing in South Kashmir in the last 24 hours.
Earlier, police recovered bullet-riddled body of a 22-year-old man in Kulgam district.
Showkat Ahmad Dar was kidnapped by terrorists on Sunday.
On Monday night, a policeman was shot dead by terrorists in Awantipora area of Pulwama District when he was returning from the marriage ceremony of his relative.