With escalating production costs and yearly losses touching Rs 150 crore, the Malayalam film industry is mulling to introduce stringent cost cutting measures to stay afloat.

The Producers Association General body has decided to cut costs as much as possible.

"Production cost should not exceed Rs 3.5 crore for superstar films, shooting should not exceed 45 days and negative film rolls should not exceed 60,000 feet, Kerala Film Chamber secretary, S S T Subramaniam told PTI.

Out of the total cost of a making a film, 60-65 per cent of the costs goes towards remuneration of the main artistes and technicians.

Industry sources say it has been decided to shelve a Joshi film starring Mohanlal as the production cost was working out to over Rs five crore.

"We are trying to come up with some stringent measures to control budgets of films. The budget of superstars should not exceed Rs 3.5 crore against the present Rs 5 crore," Film Producers Association General Secretary, Suresh Kumar said.

The association is also planning to talk to the Association of Movie Artists (AMMA) in this regard, he said.

Earlier, the superstars had been asked to cut remuneration
which did not elicit favourable response, he said.

Of the 53 films released since January this year,only three -- Hariharnagar, Bhagyadevatha and Magandae Achan have done well and covered the production cost and producers have recovered their money, Suresh told PTI.
Malayalam film industry's costliest film ever Pazhizhassi Raja with Mammooty in the lead role of the legendary king and freedom fighter of Malabar, made at a budget of Rs 26 crore, is likely to be released in 125 theatres across Kerala on Oct 16, making it the biggest film release in Malayalam.

The producers had approached the Kerala High Court to permit them to hike ticket rates as otherwise the venture would be inviable.

Most films starring Mammootty and Mohanlal released this year have not done well, say industry sources.

Mammootty's four films released so far this year are Love in Singapore, Ee Pattanathil Bhootham, Daddy Cool and Loudspeaker have received lukewarm response. Same is the case with Mohanlal starrers Red Chillies, Saagar Alias Jacky, Bhagawan and Brahamaram.

At least 100 Tamil films are released in Kerala every year. Four Telugu dubbed films were so far released this year.

In 2008, 67 Malayalam films were released, of which only four were hits.Sixteen dubbed Telugu films were also released.

According to Suresh, collections have come down drastically as people are not keen to watch films in theatres.

There are no multiplexes in Kerala and theatres do not have adequate parking facilities.

CD piracy is also eating into the industry's meager resources as CDs are available in the market within days of a film's release.