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B Rakesh, president of the Kerala Film Producers’ Association, pointed out that OTT is not automatically a fallback.
Speaking to Onmanorama, Anil Thomas said the decision was taken because the Kerala government and the Kerala Chalachitra Academy have failed to address the industry’s long-pending demands, despite repeated representations.
The producers initially approached the Producers' Association with the complaint, but later informed them they were taking legal action.
The development comes days after FEFKA General Secretary B Unnikrishnan publicly alleged that the producer, who is also a director, incurred a loss of at least ₹25 lakh from a channel deal because the lead actor failed to attend promotions.
A key demand raised by the industry is the removal of entertainment tax imposed by local bodies in addition to GST. Film organisations had earlier indicated that they would consider stronger measures if their concerns were not addressed.
Kerala Film Chamber secretary Anil Thomas said the industry is grappling with mounting financial losses and that repeated representations submitted to the government have not received any official response so far.
Out of the 184 films released in 2025, only 15 managed to do exceptionally well in theatres.
Despite receiving positive reviews, many well-made, low-budget films currently disappear from theatres within days of release, resulting in significant financial losses for producers.
Actor and president of the Association of Malayalam Movie Artists (AMMA) stated that the organisation will collaborate closely with the Kerala Film Producers' Association to enhance working conditions for those involved in the film industry. She made the remarks during a meeting of the Producers'
G Suresh Kumar welcomed the inclusion of younger members, calling it a ‘new chapter’ for the association. He also addressed recent controversies involving Sandra Thomas.
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