Crisis in Kerala's Film Industry: Production Declines and Job Losses

Doha, Qatar Jul 14, 2026 ALN: Not long ago, cinema was running at full throttle in Kerala, a state renowned for its vibrant film industry, often referred to as Mollywood. On any given day, around 30 film shoots, encompassing both big-budget movies and smaller independent films, would be underway across the region. The bustling activity involved a diverse workforce, including production controllers, cab drivers, lighting technicians, makeup artists, junior artistes, and hundreds of daily-wage workers. This dynamic ecosystem played a crucial role in keeping one of the state's largest creative industries alive. However, the current scenario paints a starkly different picture.

Industry insiders now estimate that film shoots have plummeted by over 30 percent, with the number of simultaneous productions dropping from around 30 to fewer than 20. This slowdown has rippled through the entire film industry ecosystem, leaving thousands of workers without jobs. The impact is particularly evident among cab drivers, who form one of the largest workforces associated with film productions.

"We conducted a census last week, and found that less than 200 cab drivers were currently employed in film shoots. Just a few months ago, over 300 to 350 drivers were constantly employed," said Anish Puthenpura, general secretary of the Cine Drivers' Union under the Film Employees Federation of Kerala (FEFKA). He noted that the latest union assessment reveals an even bleaker picture, indicating a significant decline in employment opportunities for those reliant on the film industry.

According to Puthenpura, the current landscape shows only 14 film shoots and two web series shoots taking place across Kerala. Cab drivers and prop vehicle drivers are indispensable on film sets as they transport artistes, equipment, props, and even food. Currently, only 120 drivers are employed, a drastic reduction from previous numbers. "In my 11 years in the industry, I have never seen a slowdown like this. Even during the floods and Covid, the industry suffered, but the present situation feels far more worrying," he remarked.

The Cine Drivers' Union has since shifted its focus from employment to welfare, recognizing the urgent needs of its members. "We have asked unemployed drivers and those struggling to buy medicines or pay rent to approach us. Last month alone, we received 60 applications for financial assistance. Many drivers are hesitant to move to platforms like Uber, as most have spent their entire careers in cinema and have few connections outside the industry. Their passion for films keeps them tied to this profession," Puthenpura explained.

The crisis in Kerala's film industry extends far beyond the cab drivers. Production controller Mehmood, based in Kozhikode, shared that four films for which locations had already been finalized were shelved after producers failed to secure necessary funding. "It is disheartening to see projects collapse even after pre-production work has been completed," he said, attributing this trend to high production costs that are gradually derailing the business. The inability to secure funding not only affects the filmmakers but also has a cascading effect on all the individuals and businesses that depend on film production.

A shrinking investor base has emerged as another major challenge for Mollywood. Producer Venu Kunnappilly, who recently co-produced ‘Aadu 3’, indicated that investors are increasingly reluctant to back films due to uncertainty over returns. "There was a time when pre-business sales kept the industry running," he explained. "Previously, several investors from Chennai and the Gulf would invest in cinema after locking in pre-business deals. That ensured a relatively safe return of 60 to 70 percent through music rights, OTT deals, satellite rights, and other revenue streams. Today, the situation has changed drastically and most investors are reluctant."

Kunnappilly noted that non-resident Indian (NRI) investors are also becoming cautious amid geopolitical uncertainties, particularly the ongoing Iran-Israel conflict. This caution has been compounded by a decline in OTT (Over-The-Top) acquisitions, which has significantly altered the business model of film production. "OTT platforms are no longer willing to buy a film just because it is a hit. Production houses now have to prove exceptional numbers, which is only possible with a superhit or blockbuster. Satellite rights have also declined sharply, and as a result, the number of investors, particularly from Tamil Nadu, has reduced," he added.

Producer Vijay Babu echoed these sentiments, stating that the landscape for film production has drastically changed. "There was a time when each OTT platform would acquire around 30 films per year. Now, across four or five major platforms, they purchase a maximum of about 45 films a year. Earlier, at least one film premiered on an OTT platform every week. That is no longer the case," he said. This reduction in acquisition rates has put immense pressure on filmmakers, who now face the dual challenge of producing quality content while also ensuring that it meets the increasingly high standards set by these platforms.

Furthermore, Babu highlighted the financial risks associated with filmmaking, particularly due to rising production costs. "It is not the same anymore. Actor remunerations have increased substantially, and productions now demand much higher levels of technical perfection. There was a time when films were completed in less than 30 days. Today, schedules are much longer and far more expensive," he noted. He also pointed out that leading actors are now signing only two films a year, compared to four or five projects annually in the past, further reducing the overall output of the industry.

Industry observers have noted that very few first-time producers are willing to return for a second venture due to the prevailing financial climate. "The financial figures released by the Producers' Association last year frightened many potential investors. When industry losses are highlighted so prominently, investors naturally become far more cautious," shared an industry source, underscoring the growing trepidation among those considering entering the film business.

R H Satheesh, treasurer of FEFKA, stated that while the number of shoot days increased following the adoption of an eight-hour work schedule, this has not translated into more employment opportunities. "Even if a film's shooting schedule increases from 30 days to 45 days, the people working on that project remain the same. So while those already employed benefit from the extended schedule, it does not create additional jobs for others," he explained, highlighting a critical issue within the industry that has implications for many workers.

The slowdown is also reflected in official figures. According to data from the Kerala Film Chamber, only 89 films had been released so far in 2026, compared to around 130 during the same period in 2025, marking a decline of more than 30 percent. Industry sources also point to a drop in new film registrations, as well as reduced pre-production and post-production activity. This trend raises concerns about the future vitality of Kerala's film industry, which has historically been a significant contributor to the state's economy.

Kerala Film Chamber president Anil Thomas acknowledged the slowdown but refrained from disclosing exact figures. "There is a slight slowdown in production. But cinema has always shown resilience, and recent blockbusters have generated fresh momentum. We believe the industry can recover," he stated. His comments reflect a sense of cautious optimism, although the challenges facing the industry remain significant.

The implications of this crisis extend beyond the immediate job losses and financial struggles. The decline in film production can have a broader impact on the cultural landscape of Kerala, which has long been shaped by its rich cinematic heritage. With fewer films being produced, there is a risk that the diversity of storytelling and artistic expression could diminish. Moreover, the economic ramifications could affect not only those directly involved in film production but also ancillary industries such as tourism, advertising, and merchandise that thrive on the vibrancy of the film industry.

As the situation unfolds, stakeholders within Kerala's film industry will need to navigate these challenges with innovation and resilience. Exploring new business models, fostering collaborations, and adapting to changing market dynamics will be crucial for the survival and revival of this cherished industry. The road ahead may be fraught with difficulties, but the passion for cinema in Kerala remains strong, and many hope for a resurgence that can once again energize the industry and its workforce.