Malayalam film industry faces deep financial crisis amidst internal rift
Kochi: The Malayalam film industry is grappling with a severe financial crisis, with producers and actors locked in a public dispute over rising production costs and remuneration demands. The Kerala Film Producers Association (KFPA) has announced an industry-wide strike from June 1, citing unsustainable expenses and declining box office returns.
KFPA Vice President G Suresh Kumar blamed actors and technicians for inflating their fees after a few successful films, leading to financial instability. He claimed that even movies entering the so-called ₹100 crore club do not yield significant profits for producers. "If a film earns ₹1 from theatres, only 25 paise reaches the producer," Kumar stated.
However, prominent producer Antony Perumbavoor criticised the strike decision, arguing it lacked proper discussions among stakeholders and would negatively impact many industry workers. Several actors, including Mohanlal, Prithviraj, and Unni Mukundan, supported Antony’s stance, intensifying the divide within the industry.
The dispute escalated after KFPA, along with film distributors and theatre owners, proposed banning films produced by actors from being screened. This move, seen as an unprecedented challenge, could lead to open confrontation with stars like Mammootty, Prithviraj, and Fahadh Faasil, who own production companies.
KFPA estimates that the Malayalam film industry suffered losses of ₹700 crore in 2024, despite a total investment of ₹1,000 crore. While 207 films were released last year, only 24 were considered successful. In January 2025 alone, 28 films hit theatres, but only one, Rekhachitram, made it to the hit list.
According to Saji Nanthyatt, Secretary of the Kerala Film Chamber, poor financial discipline, high daily production costs, and increasing wages for technicians and actors are pushing producers into crisis. He noted that changing audience preferences are also affecting the industry, with younger viewers dominating theatres while family audiences decline.
During the COVID-19 pandemic, several Malayalam films, including Drishyam 2 and Minnal Murali, found success on OTT platforms. However, streaming services have since altered their strategies, now preferring films with strong theatrical performances. This shift has further reduced revenue opportunities for struggling producers.
Amidst the crisis, industry leaders are urging the Kerala government to address double taxation on movie tickets and provide financial support by officially recognising the film sector as an industry. Discussions with authorities are expected, failing which the indefinite strike may proceed.
Let the Truth be known. If you read VB and like VB, please be a VB Supporter and Help us deliver the Truth to one and all.
Rupee hits all-time low for second time in a week
Mumbai (PTI): The rupee depreciated 31 paise to settle at 91.99 against the US dollar on Wednesday, touching the lowest closing level for the second time in less than a week, amid increased month-end demand for the greenback.
Forex traders said the rupee opened higher as the US dollar index softened and a long-awaited trade breakthrough with Europe offered quiet reassurance. However, increased month-end demand for the American currency as well as the ongoing geopolitical tensions dented investors' sentiments.
At the interbank foreign exchange, the rupee opened at 91.60 and touched an early high of 91.50, but pared all the gains to touch an intra-day low of 91.99 against the greenback.
The domestic unit settled 31 paise down, revisiting its lowest-ever closing level of 91.99 against the greenback. The Indian currency previously ended at this level on January 23 when it also hit its all-time intraday low of 92 against the US dollar.
On Tuesday, the rupee rebounded from its all-time low levels and gained 22 paise to close at 91.68 against the US dollar.
Analysts said the rupee opened higher as the US dollar index softened and a long-awaited trade breakthrough with Europe bolstered investor sentiment.
India and the European Union on Tuesday announced the conclusion of negotiations for the free trade agreement (FTA), under which a number of domestic sectors such as apparel, chemicals and footwear will get duty-free entry into the 27-nation bloc, while the EU will get access to the Indian market at concessional duty for cars and wines, an official said.
The deal has been dubbed the "mother of all deals" as it will create a market of about 2 billion people.
Meanwhile, the dollar index, which gauges the greenback's strength against a basket of six currencies, was trading 0.07 per cent lower at 96.14.
Brent crude, the global oil benchmark, was trading 0.43 per cent lower at USD 67.28 per barrel in futures trade.
On the domestic equity market front, Sensex jumped 487.20 points to settle at 82,344.68, while Nifty surged 167.35 points to 25,342.75.
Foreign Institutional Investors turned net buyers and purchased equities worth Rs 480.26 crore on Wednesday, according to exchange data.
