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The decision came after talks between Tamil Nadu minister K T Rajenthra Balaji and office-bearers of the fireworks manufacturers associations till late last night, sources said.
Sivakasi is the country’s fireworks manufacturing hub.
The manufacturers had been on an indefinite stir from December 26.
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The associations have also been seeking expeditious hearing by the Supreme Court of a petition seeking a series of steps to curb air pollution, including a ban on sale, possession and bursting of firecrackers across the country.
Owners of fireworks manufacturing units announced that they were withdrawing the strike and would resume work from January 22.