The fire, which broke out at around 10 PM, was brought under control at least two hours later, but it has not been doused completely.
At least 12 fire tenders, including those from neighbouring districts of Kannur and Malappuram and Karipur airport, were engaged in to bring the blaze under control.
Home Minister Ramesh Chennithala said all attempts were being made to douse the blaze. There was no report of any casualty, he said.
'Mittai Theravu', also known as sweet meat street, is a commercial hub of Kozhikode and houses several shops-- both big and small-- lined up on both sides of the narrow street, considered the busiest in Kozhikode in north Kerala.
Known as 'Street of Sweets' in the old times, the heritage street is lined up with several sweet stalls, textile shops and various other shops selling sundry articles.
Six persons were killed and 50 injured when a cracker shop caught fire at Mittayi Theravu in April 2007.