In December of last yr, we reported on the difficult situation faced by Mollywood film producers. While Malayalam cinema has gained significant exposure outside of Kerala and is widely known for its content-driven, grounded storytelling, the industry has suffered severe financial losses. Based on a Kerala Film Producers’ Association (KFPA) report, the Malayalam film industry incurred losses amounting to INR 650–700 crores in 2024.
This grim scenario persevered despite the financial success of several notable movies, including A.R.M., Kishkindha Kaandam, Aavesham, Premalu, Aadujeevitham: The Goat Life, Manjummel Boys, and others. Unfortunately, recent developments indicate that the situation stays unchanged.
Various film bodies within the Malayalam film industry have decided to take matters into their very 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 movies, ultimately resulting in significant losses for producers.
Based on Kerala Film Chamber of Commerce President G. Suresh Kumar, repeated appeals have been made to the federal government to handle these issues. Still, no concrete motion has been taken to date. Producers in Kerala are burdened by double taxation—GST and entertainment tax—on film tickets, which adds to their financial strain. Consequently, they’ve decided to halt film shoots and screenings from the mentioned date if the federal government fails to step in and resolve their grievances.
Based on G. Suresh Kumar, 60% of a movie’s budget is spent on paying actors’ remuneration. Alarmingly, out of the 28 movies released in January 2025, just one Rekhachithram was financially successful. The collective losses from the opposite movies exceeded INR 100 crores.
The Producers’ Association has warned that, if mandatory, it’ll publicly disclose the remuneration details of the industry’s highest-paid actors.
In an effort to resolve the continuing crisis, the film bodies plan to satisfy with the Chief Minister and other concerned ministers once more to submit a memorandum and seek an amicable settlement. It’s uncertain whether the problems can be resolved with out a strike, but with over three months remaining, there continues to be time to achieve a settlement.
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