Minister MB Rajesh has appealed to football fans in Kerala to dispose of the cutouts in a scientific manner.
Neymar scored in the first half of Extra Time before Croatia equalised and prevailed in shootout.
Croatia have reached the semifinals for the second edition in a row. The Europeans have made the last four three times in total.
Neymar shook off an ankle injury to start for Brazil and helped them to a convincing 4-1 win in the round-of-16.
Brazil will meet Croatia in the first quarterfinal on Friday.
Tite stressed that Neymar's return was with the full backing of the team's medical staff and the player's physical health was the priority.
Both Danilo and Neymar suffered ankle injuries in Brazil's opening 2-0 win over Serbia, which ruled them out of their 1-0 win over Switzerland and the shock loss to Cameroon.
Delivering Brazil's first World Cup since 2002 will go a long way in helping Neymar cement his place among the game's modern greats.
Neymar suffered a ligament injury after the match with Serbia
The Brazilian talisman along with Danilo will be huge miss for Brazil.