Date: February 17, 2025
Malayalam Film Industry Faces Crisis: Shutdown Possible
The Malayalam film industry is on the verge of a major shutdown as producers and industry bodies raise concerns over skyrocketing production costs and excessive taxation. Reports indicate that from June 1, 2025, the industry may halt production, distribution, and exhibition of films unless a resolution is reached.
Malayalam: Producers’ Growing Concerns
Renowned Malayalam film producer G. Suresh Kumar has voiced his frustration over the unsustainable financial model plaguing the industry. According to him, actors and technicians are demanding exorbitant fees, sometimes ten times higher than what the industry can afford. Moreover, the 30% GST and additional entertainment tax imposed by the government is further squeezing the producers’ margins.
Suresh Kumar explained that when a film grosses ₹100 crores, producers receive only ₹27 crores after deductions, making it difficult to sustain the industry. He emphasized the urgent need for intervention to regulate costs and create a more sustainable ecosystem for filmmakers.
Industry Bodies Call for Shutdown
In a recent meeting, members of the Kerala Film Producers Association (KFPA) and Film Employees Federation of Kerala (FEFKA) collectively decided to take drastic action. They plan to completely shut down the Malayalam film industry starting June 1, 2025, until a viable solution is implemented to control production costs and bring artists’ remunerations within a reasonable range.
Adding to the unrest, the associations plan to protest in front of the Secretariat in Thiruvananthapuram in the coming weeks. They are demanding that the state government reconsider the existing taxation model, which they believe is putting undue financial pressure on the industry.
Staggering Losses in the Malayalam Film Industry
Suresh Kumar revealed alarming financial figures indicating a steep decline in profitability for producers. In 2024, the Malayalam film industry suffered losses ranging between ₹600 – ₹700 crores, with only 24 films out of 200 achieving commercial success. The trend worsened in January 2025, where the industry incurred ₹100 crores in losses, with just one successful film out of 28 releases.
Mixed Reactions from Industry Leaders
While a majority of industry members support the shutdown, some dissenting voices warn of severe repercussions. Antony, producer of the much-anticipated film L2: Empuraan, argues that a strike could jeopardize thousands of livelihoods dependent on the Malayalam film industry. Instead, he suggests that stakeholders collaborate to find a long-term solution without halting production entirely.
What Lies Ahead?
As tensions rise, all eyes are on industry leaders and government authorities to address the crisis. If the shutdown proceeds, it could mark a historic moment in Malayalam cinema, affecting upcoming releases, ongoing productions, and the livelihoods of countless professionals.
The coming weeks will be crucial in determining whether a middle ground can reached or if Malayalam cinema will face an unprecedented industry-wide shutdown from June 1, 2025.