TOKYO (Reuters) -- A pair of melons from the Japanese city of Yubari -- better known lately for going bankrupt than for its farm produce -- fetched a record 2 million yen (8,400 pounds) at the season's first auction on Tuesday.

Department store Marui Imai Inc. in the city of Sapporo on Japan's northernmost island of Hokkaido snapped up the melons, beating out other bidders and besting the previous record price of 800,000 yen set last year, an official of local farm co-op JA Yubari said.

"This year is the 135th anniversary of the founding of our department store, so that is one reason" why the store paid so much, said Marui Imai spokeswoman Shizuka Sumii.

"Yubari melons are a popular gift at 'chugen' (the summer gift season) and we sell a lot," she said, adding that less extravagant Yubari melons could be bought for around 5,000 yen.

A former coal mining city, Yubari made headlines last year when it filed for bankruptcy with debts worth more than $500 million.

Like many Japanese municipalities, Yubari got huge subsidies from the central government during boom times and used them to fund tourist attractions that ended up running big deficits.

Kyodo news agency quoted a city spokesman as saying Yubari's woes may have generated publicity for the annual melon auction, but the JA Yubari official shrugged off the notion.

"I don't think that made much difference," he said, adding that good weather in March and April meant this year's crop was particularly tasty.