Current Status: Kerala Cinema Strike Withdrawn!

In a major development today, January 20, 2026, the various film organizations in Kerala announced the withdrawal of the token strike that was planned for tomorrow, Wednesday, January 21. The decision came after a crucial meeting between industry leaders and the Kerala Minister for Cultural Affairs, Saji Cheriyan.

During the discussion, the Minister gave a strong assurance to the film bodies that the government is sympathetic to the crisis facing the industry. Minister Saji Cheriyan acknowledged that the demands raised by the film fraternity are “justified” and promised to bring these issues to the attention of Chief Minister Pinarayi Vijayan. The government has requested a two-week period to find a concrete solution to the financial and administrative hurdles mentioned by the organizations.

Consequently, all theatres across Kerala will remain open, and all film shootings and production activities will proceed as scheduled tomorrow. This is a massive win for fans and the thousands of daily-wage workers who depend on the industry.

Understanding the 2026 Malayalam Cinema Strike

The call for a strike was not a sudden decision but the result of a deepening financial crisis. 2025 was a challenging year for Mollywood; despite over 180 releases, only a handful—around 10 to 15 films—managed to become profitable. The industry reportedly faced a staggering loss of over ₹500 crore last year.

The Kerala Film Chamber of Commerce, along with other apex bodies, had initially announced a “token strike” as a final warning. The plan was to shut down every single screen in the state and halt all filming locations from Kasaragod to Thiruvananthapuram. The industry was ready to move into an indefinite strike if this warning went unheeded.

Who Called the Strike and What Were Their Demands?

The strike was a rare display of unity, supported by almost every major organization in the Malayalam film industry, including:

• Kerala Film Chamber of Commerce (KFCC)

• Kerala Film Producers’ Association (KFPA)

• Association of Malayalam Movie Artists (AMMA)

• Film Employees Federation of Kerala (FEFKA)

• Theatre Owners’ Associations

Key Demands of the Industry:

Abolition of Double Taxation: The most significant demand is the removal of the Entertainment Tax collected by local self-government bodies. Producers argue that paying this on top of the 18% GST is making the business unviable.

Electricity Tariff Revision: The industry requested a special, lower electricity tariff for cinema halls, which currently face high commercial rates despite struggling for footfalls.

Single-Window Clearance: A demand for a unified system to get filming permissions easily without running to multiple government offices.

Action Against Piracy & Review Bombing: The industry seeks stricter laws to curb digital piracy and “coordinated review bombing” that targets films on the first day of release.

Welfare Measures: Requests for pensions for veteran workers above 60 and increased subsidies through the Kerala State Film Development Corporation (KSFDC).

Conclusion

While the strike is called off for now, the ball is now in the government’s court. The “two-week grace period” requested by Minister Saji Cheriyan will be crucial. If the government fails to provide a roadmap for tax relief and electricity subsidies, the industry has hinted that they may revisit the idea of a shutdown.

For now, the show goes on! Malayalam cinema, which has been gaining global acclaim for its storytelling, can continue its journey without a break. Fans can head to the theatres tomorrow to support their favorite stars and help the industry recover from its losses.