In December of last year, we reported on the challenging situation faced by Mollywood film producers. While Malayalam cinema has gained significant exposure outside of Kerala and is widely recognized for its content-driven, grounded storytelling, the industry has suffered severe financial losses. According to a Kerala Film Producers’ Association (KFPA) report, the Malayalam film industry incurred losses amounting to INR 650–700 crores in 2024.
This grim scenario persisted despite the financial success of several notable films, including A.R.M., Kishkindha Kaandam, Aavesham, Premalu, Aadujeevitham: The Goat Life, Manjummel Boys, and others. Unfortunately, recent developments indicate that the situation remains unchanged.
Various film bodies in the Malayalam film industry have decided to take matters into their own hands by announcing an indefinite strike starting June 1, 2025. The strike is primarily fueled by concerns over actors’ skyrocketing remuneration and the entertainment tax, which contribute to inflated and unsustainable budgets for Malayalam films, ultimately leading to significant losses for producers.
According to Kerala Film Chamber of Commerce President G. Suresh Kumar, repeated appeals have been made to the government to address these issues. Still, no concrete action has been taken so far. Producers in Kerala are burdened by double taxation—GST and entertainment tax—on film tickets, which adds to their financial strain. As a result, they have decided to halt film shoots and screenings from the mentioned date if the government fails to step in and resolve their grievances.
According to G. Suresh Kumar, 60% of a film’s budget is spent on paying actors’ remuneration. Alarmingly, out of the 28 films released in January 2025, only one Rekhachithram was financially successful. The collective losses from the other films exceeded INR 100 crores.
The Producers’ Association has warned that, if necessary, it will publicly disclose the remuneration details of the industry’s highest-paid actors.
In an effort to resolve the ongoing crisis, the film bodies plan to meet with the Chief Minister and other concerned ministers once again to submit a memorandum and seek an amicable settlement. It is uncertain whether the issues will be resolved without a strike, but with over three months remaining, there is still time to reach a settlement.
