Citing steep GST rates and rising actors' salaries, the Malayalam film industry has decided to halt all film-related activities—including screenings, shoots, and production—starting June 1.

Several film bodies, including the Kerala Film Producers Association and the Film Employees Federation of Kerala (FEFKA), convened for a meeting and reached a consensus to proceed with the shutdown.

Addressing reporters after the discussion, film producer and president of the Film Chamber of Kerala, G. Suresh Kumar, stated that out of the 28 releases so far this year, only Rekhachitram was profitable, leading to an overall loss of ₹101 crore for the Kerala film industry. Despite delivering blockbusters like Aavesham, Premalu, and Manjummel Boys, the Malayalam industry saw the failure of 176 films last year, according to Suresh Kumar.

Reflecting on the rising input costs in filmmaking, Suresh Kumar pointed out that 60% of production expenses go toward paying actors' fees. Adding to the financial strain, films originally planned for a 50-day schedule often extend up to 150 days. He also voiced concerns over the 30% GST levied on films and painted a grim picture of the theatrical business, stating that box office earnings barely help recover 10% of production costs.

The Kerala film industry will go into a shutdown, demanding a rollback of GST and other entertainment taxes along with a reduction in actors' salaries.