Malayalam film industry to shut down from June 1? Here’s the reason behind the decision

Renowned producer G. Suresh Kumar shared this decision on February 6 after a joint meeting with industry associations and the Film Employees Federation of Kerala (FEFKA).

Hyderabad: The Malayalam film industry is set to shut down from June 1, 2025, due to severe financial struggles. However, no reopening date has been announced yet.

Renowned producer G. Suresh Kumar shared this decision on February 6 after a joint meeting with industry associations and the Film Employees Federation of Kerala (FEFKA).

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The shutdown comes as the industry faces massive losses. In 2024, around 200 films were released, but only 24 succeeded, while the rest incurred losses totaling nearly Rs. 700 crore. Producers, exhibitors and distributors blame high actor and technician remunerations, along with heavy government-imposed entertainment taxes like GST, which takes up almost 30% of a film’s gross earnings.

The decision follows failed negotiations with actors to lower their fees. While they initially agreed to the terms during the meeting, they later backed out.

Industry representatives hope that if actors, technicians and the government cooperate in the coming months, the shutdown can still be avoided.