The members affiliated to Tamil Nadu Cattle Merchants and Workers Protection Welfare Association were on strike following the action by the activists.
The activists had alleged that the jampacked cattle being transported were not given water or fodder for three days, while being taken to markets and also to neighbouring states.
They used to seize the cattle and hand over them to Goshala, with police permission.
After a prolonged dialogue, the district administration allowed transport of 24 cattle in a truck and assured the merchants of no intervention from activists, police said.
Based on the assurance, the merchants withdrew their 27-day old strike and decided to resume the business from tomorrow, they said.