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Mollywood, or the Malayalam film industry, has been enjoying pan-India recognition lately due to multiple factors. However, the reality is that the industry is struggling on several fronts, including financially. Various Malayalam film organizations have been urging the state to address their concerns, but the state has remained indifferent. As a result, they have called for a strike on January 22, 2026. On that day, theaters across Kerala will not operate, and all film production-related activities will also be suspended.
The financial strain is also evident in the box office performance of Malayalam cinema in 2025. Despite a high volume of releases, only a handful of films managed to work commercially, while the majority failed to recover costs. Titles like Lokah Chapter 1: Chandra, Eko, Thudarum, Ponman, Empuraan, and Kalamkaval were among the few that found traction with audiences, highlighting how narrow the margin for success has become in an otherwise prolific industry.
What Are The Reasons For The Strike?
According to Anil Thomas, the Secretary of the Kerala Film Chamber, Mollywood is facing several challenges, with financial losses being the most significant. One of the main contributing factors, he says, is the issue of double taxation. As per Onmanorama, Anil Thomas stated that “no other industry is subjected to this kind of double taxation,” a claim that is factually incorrect.
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The Producers Association has also expressed support for the strike. The issues raised by the association include high electricity tariffs charged by the state-run Kerala State Electricity Board Limited. Additionally, they are demanding a more streamlined process for obtaining film shooting permissions. Specifically, they are calling for a single-window system that would allow producers to secure all necessary government approvals through one unified platform.
What’s Next For The Industry?
If the state government is not willing to step in and address their concerns, industry bodies are expected to proceed with an indefinite strike. According to The New Indian Express, the government is likely to hold talks with film organizations on January 14, 2026, although this has not been officially confirmed yet.
The report also notes that representatives from the film industry had earlier met Kerala Chief Minister Pinarayi Vijayan to raise multiple issues, including a demand to withdraw the state-level entertainment tax that is levied in addition to GST. Another worrying indicator of the financial viability of Malayalam cinema. According to a report by The New Indian Express, only ten of the 180 Malayalam films released in 2025 managed to generate profit.
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