FDDI comes under the Ministry of Commerce and Industry and is considered a premier institution for training in the field of leather products, footwear, fashion, design and retail.
The institute has also asked the students to vacate the hostels at the earliest.
"In view of the violent protest registered by some of the students at FDDI and in order to safeguard the government property and security of other students at all the FDDI campuses across India, it (has been) decided that the classes for all the programmes will be suspended till October 16," the institute said in a notice.
The students are demanding that they should be granted a degree from a regular university and not from IGNOU.
The issue cropped up after the University Grants Commission (UGC) declared that Mewar University cannot award the degree to FDDI students.
The Indira Gandhi National Open University (IGNOU) used to grant degrees for all courses at the institute, but it discontinued the same in 2012 academic session even as 1,250 students were enrolled for various graduate and post-graduate programmes.
Amid concerns being raised by students and their parents, Commerce and Industry Minister Nirmala Sitharaman had said the issue is being sorted out with co-operation from Minister of Human Resources and Development Smriti Irani.
But students are alleging that the government is not doing anything to reolve the issue.