Mollywood, or the Malayalam film industry, has been having fun with pan-India recognition recently on account of multiple aspects. Nevertheless, the fact is that the industry is struggling on several fronts, including financially. Various Malayalam film organizations have been urging the state to handle their concerns, however the state has remained indifferent. Because of this, they’ve called for a strike on January 22, 2026. On that day, theaters across Kerala is not going to operate, and all film production-related activities may even be suspended.
The financial strain can be evident within the box office performance of Malayalam cinema in 2025. Despite a high volume of releases, only a handful of movies managed to work commercially, while the bulk didn’t get better costs. Titles like Lokah Chapter 1: Chandra, Eko, Thudarum, Ponman, Empuraan, and Kalamkaval were among the many few that found traction with audiences, highlighting how narrow the margin for achievement has turn into in an otherwise prolific industry.
What Are The Reasons For The Strike?
Based on Anil Thomas, the Secretary of the Kerala Film Chamber, Mollywood is facing several challenges, with financial losses being essentially the most significant. One among the major contributing aspects, he says, is the problem of double taxation. As per Onmanorama, Anil Thomas stated that “no other industry is subjected to this type of double taxation,” a claim that’s factually incorrect.
The Producers Association has also expressed support for the strike. The problems raised by the association include high electricity tariffs charged by the state-run Kerala State Electricity Board Limited. Moreover, they’re demanding a more streamlined process for obtaining film shooting permissions. Specifically, they’re calling for a single-window system that might allow producers to secure all essential government approvals through one unified platform.
What’s Next For The Industry?
If the state government will not be willing to step in and address their concerns, industry bodies are expected to proceed with an indefinite strike. Based on The Recent Indian Express, the federal government is prone 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 boost multiple issues, including a requirement to withdraw the state-level entertainment tax that’s levied along with GST. One other worrying indicator of the financial viability of Malayalam cinema. Based on a report by The Recent Indian Express, only ten of the 180 Malayalam movies released in 2025 managed to generate profit.
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