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Ceratovacuna lanigera Zehntner is a major leaf pest of sugarcane. Widely distributed, it affects both the yield and quality of sugarcane in China. This study aimed to assess real yield and sugar yield losses, and the effect of C. lanigera damage on emergence of newly planted and ratoon cane under current production levels. Field experiments were carried out from 2014 to 2016 in Yunnan Province China. At maturity, plants were harvested and weighed to determine yield, and the effect on sugarcane quality and sucrose content analyzed. Real yield decreased by average of 46,185 kg hm−2 (range: 37,545–61,845 kg hm−2) in damaged versus undamaged areas, with an average yield loss rate of 35.9% (28.5–45.7%). Juice yield decreased by an average of 3.01% (2.4–4.13%) and sucrose content by 6.38% (5.48–8.16%). Juice brix decreased by an average of 7.66°BX (6.95–9.05°BX) and juice gravity purity by 12.35% (8.43–19.97%). In contrast, the reducing sugar content increased by an average of 1.21% (1.01–1.3%). Emergence rates of newly planted cane decreased by an average of 26.0% (24.7–27.3%). The emergence number of ratoon cane decreased by 66,834 hm2 (57,429–76,238 hm−2) and relative emergence loss rates of ratoon cane decreased by an average of 57.8% (57.6–58.0%). These findings confirm that C. lanigera damage severely affects sugarcane yield and quality in Yunnan Province. The results will help the implementation of effective control measures, thereby supporting sustainable development of the Chinese sugar industry.