50,000-odd members of MSCDA were expected to take part in the strike, to protest against alleged harassment by the state Food and Drugs Administration (FDA).
"We have decided to call off our proposed strike following marathon meeting today in Kolhapur between minister of state for FDA Satej Patil and association members, in which the government accepted all our 12 demands," association's president Jagannath Shinde told PTI.
According to sources, Chief Minister Chavan had asked Patil to sort out the issue at the earliest.
The chief grouse of the association was alleged harassment of chemists by corrupt FDA officials in the past few months, and registration of FIRs against a few shop-owners.
The association had called for a strike in July too, but backed off after minister Patil assured that ambiguities with regard to import, manufacture, distribution and sale of drugs in the existing Drugs and Cosmetics Act, 1940 would be removed in a new act.
The association, at the time, had also elicited an assurance that no FIR would be lodged against a drug store owner without verification of his/her role in the alleged malpractice.
Earlier today, a PIL had been filed in the Bombay High Court, seeking a restraint order against the strike.