The fall amounts to about 3pc of China's total output from sugarcane in the 2018/19 crop year, or 9.49 million tonnes. The crop year runs from October to September.
Yunnan is the second most important growing area for sugarcane, after neighbouring Guangxi region
Severe drought in Yunnan has damaged about a third of the province's cane planting areas, said the report, and will reduce cane output by 2.23 million tonnes
The ongoing drought is expected to cause more damage, the report added.
It has also impacted rubber production in the province.