In a report, CARE Ratings said, “The government’s move to raise duty on sugar is likely to keep the prices stable. This step also indicate that the government is keeping an eye on the industry’s situation and is expected to continue to take measures to keep the prices stable. Also, the government has hiked the sugarcane price payable to farmers by 10.9 per cent to Rs 255 a quintal on a year-on-year basis for the sugar year 2017-18. Thus, it could not have afforded the fall in sugar prices as it would have resulted in higher sugarcane arrears.”