The Malayalam film industry is facing a significant crisis, leading to an announced total shutdown of all film-related activities, including shooting and screening, starting June 1, 2025. This decision was made collectively by various film bodies, such as the Kerala Film Producers Association (KFPA), the Kerala Film Distributors Association, the Film Employees Federation of Kerala, and the Film Exhibitors United Organisation of Kerala.
“There is no industry which is being taxed at 30%, and it includes GST besides additional entertainment tax,” stated Suresh Kumar, the father of actress Keerthy Suresh, a prominent producer in Malayalam cinema, according to a report by Siasat. He also stated that, The government must intervene and take this back. Actors’ and others’ pay has increased more than ever before, and it needs to be reduced.
1. Escalating Actor Remunerations: A major point of contention is the substantial increase in actors’ fees. G. Suresh Kumar, President of the Film Chamber of Kerala, highlighted that approximately 60% of a film’s budget is consumed by actor salaries, which poses a severe financial strain on producers. He emphasized that even emerging actors and directors are demanding high fees, making film production economically unviable.
2. Taxation Challenges: The industry is burdened by a cumulative tax rate of around 30%, which includes the Goods and Services Tax (GST) and additional entertainment taxes. Producers are urging the state government to reconsider and reduce these taxes to alleviate financial pressures.
3. Extended Production Timelines: Films that could traditionally be completed in 50 days are now taking up to 150 days, leading to inflated production costs. This inefficiency further exacerbates the financial challenges faced by producers.
The financial health of the Malayalam film industry has been declining, with a significant number of films under-performing at the box office. In 2024, 176 Malayalam films failed commercially. In January 2025 alone, theater losses amounted to ₹101 crore. This downturn has severely impacted the livelihoods of many professionals working behind the scenes.
The film bodies are calling for:
– Reduction in Actor and Technician Fees: A restructuring of remuneration to sustainable levels.
– Tax Reforms: A decrease in the cumulative tax burden to make film production more financially viable.
If these demands are not addressed, the industry plans to proceed with the indefinite strike starting June 1, 2025, halting all film production and exhibition activities. The film bodies intend to meet with the Chief Minister and other relevant ministers to submit a memorandum seeking an amicable resolution.
The situation remains fluid, and stakeholders are hopeful for a resolution that will prevent the shutdown and revitalize the Malayalam film industry.
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