Malayalam Film Industry to Cease Operations Starting June 1 in Response to Rising Fees and Unfavorable Policies

Synopsis

Various Malayalam film organizations have declared a complete shutdown of all film-related activities from June 1, protesting against skyrocketing actor fees and excessive taxation. Leading producer G. Suresh Kumar highlighted the industry's struggles, including significant box office failures and the dire situation faced by industry professionals.

Key Takeaways

Complete shutdown of Malayalam film activities from June 1.
Industry facing a 30% tax burden including GST.
Actor remuneration comprises 60% of film costs.
176 Malayalam films failed at the box office in the past year.
The OTT market is currently struggling.

Kochi, Feb 6 (NationPress) Various organizations within the Malayalam film industry, which have been continuously discussing the challenges confronting the sector, have announced a complete halt to all cinematic activities, including both the filming and showing of movies, starting from June 1.

During this declaration, prominent producer G. Suresh Kumar stated that the industry is currently struggling, with numerous films failing at the box office, leaving producers in a difficult position.

"There is no other industry facing a 30 percent tax burden, which includes GST and additional entertainment taxes. The government must intervene and eliminate this," stated Suresh Kumar, who is also the father of National Award-winning actress Keerthi Suresh.

"The pay for actors and other crew members has soared to unprecedented heights and needs to be reduced. Currently, 60 percent of a film's budget is consumed by actor salaries, which is extremely harmful to producers. The actors show no concern for this, and we cannot progress under these conditions," he continued, mentioning that his wife Maneka was a well-known actress from earlier decades.

"Even newcomers demand high fees, as do directors. A film that could be completed in 50 days often extends to 150 days. Less than 10 percent of earnings are recouped from theaters compared to actor remuneration. We will not support films produced by these actors," he added.

Further explaining the dire circumstances, he noted that in the past year, 176 Malayalam films failed at the box office. In January 2025 alone, losses for theaters reached Rs 101 crore.

"About 60 percent of the professionals working behind the scenes in the film industry are struggling for survival. The state government remains silent, and currently, the OTT market has diminished. If a film performs well in theaters, the OTT market may offer a sum... However, to receive the agreed amount can take between six to ten months," concluded Suresh Kumar.