SECURITIES AND EXCHANGE COMMISSION
                            WASHINGTON, D. C.  20549
                                   FORM 10-Q

        [X] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
                      SECURITIES EXCHANGE ACT OF 1934

        For the quarterly period ended January 31, 2001

                                       OR

        [ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
                      SECURITIES EXCHANGE ACT OF 1934

        For the transition period from_________________to__________________


                         COMMISSION FILE NUMBER  0-1287


                              STERLING SUGARS, INC.
        ____________________________________________________________________
              Exact name of registrant as specified in its charter


                 Louisiana                              72-0327950
        _______________________________       ______________________________
        State or other jurisdiction of         IRS employer identification
        incorporation or organization                     number


            P. O. Box 572, Franklin, La.                   70538
        ____________________________________________________________________
        Address of principal executive offices            Zip Code


        Registrant's telephone number including area code       337 828 0620

                                  Not Applicable
        ____________________________________________________________________
        Former name, former address and former fiscal year, if changed since
        last report.


        Indicate by check mark whether registrant (1) has filed all reports
        required to be filed by Section 13 or 15(d) of the Securities
        Exchange Act of 1934 during the preceding 12 months (or such shorter
        period that the registrant was required to file such reports), and
        (2) has been subject to such filing requirments for the past 90 days.

        YES X  NO

        There were 2,500,000 common shares outstanding at March 6, 2001.


                                                  Total number of pages    13

                                                                          -1-







<PAGE>
                            STERLING SUGARS, INC.

                                 I N D E X

                                                                  PAGE
                                                                 NUMBER
        PART I:  FINANCIAL INFORMATION:

         ITEM 1. FINANCIAL STATEMENTS

                 Condensed balance sheets January 31, 2001
                 (unaudited) and July 31, 2000                     I-1

                 Statements of earnings and retained earnings
                 Six months ended January 31, 2001 (unaudited)
                 and 2000 (unaudited)                              I-2

                 Statements of earnings and retained earnings
                 Three months ended January 31, 2001 (unaudited)
                 and 2000 (unaudited)                              I-3

                 Statements of cash flows
                 Six months ended January 31, 2001 (unaudited)
                 and 2000 (unaudited)                              I-4

                 Notes to condensed financial statements
                 Three and six months ended January 31, 2001
                 and 2000                                          I-5

         ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF
                 FINANCIAL CONDITION AND RESULTS OF OPERATIONS     I-6

        PART II. OTHER INFORMATION:

         ITEM 6. EXHIBITS AND REPORTS ON FORM 8K                  II-1






















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<PAGE>
                            STERLING SUGARS, INC.
                          CONDENSED BALANCE SHEETS

                                                  January 31,    July 31,
                                                     2001          2000
                                                   UNAUDITED       NOTE
     ASSETS:                                    ---------------------------
      CURRENT ASSETS:
         Cash and short-term investments        $     67,928  $     11,500
         Accounts receivable                      11,929,613     1,305,409
         Raw sugar and molasses inventories
           (at market)                             9,620,777          -
         Operating supplies - at cost                752,738       729,213
         Deferred income taxes                       365,000       365,000
         Other current assets                        418,590       577,142
                                                ------------- -------------
            TOTAL CURRENT ASSETS                $ 23,154,646  $  2,988,264
                                                ------------- -------------
       Property, plant and equipment - net      $ 24,613,372  $ 24,953,785
                                                ------------- -------------
       Expenditures for future crops            $  1,138,963  $  1,138,963
                                                ------------- -------------
       Notes receivable - net of allowance      $    480,023  $    488,162
                                                ------------- -------------
       Other assets                             $     41,206  $     41,206
                                                ------------- -------------
                                                $ 49,428,210  $ 29,610,380
                                                ============= =============
     LIABILITIES AND STOCKHOLDERS' EQUITY:
      CURRENT LIABILITIES:
        Notes Payable                           $ 10,465,000   $   679,531
        Accounts payable and accrued expenses      3,111,338     1,390,249
        Due cane growers                           7,056,224       648,883
        Current portion long-term debt             4,172,032       932,680
                                                ------------- -------------
            TOTAL CURRENT LIABILITIES           $ 24,804,594  $  3,651,343
                                                ------------- -------------
       Long-term debt                           $  2,854,098  $  7,013,888
                                                ------------- -------------
       Deferred income taxes                    $  1,745,000  $  1,745,000
                                                ------------- -------------

     STOCKHOLDERS' EQUITY:
        Common stock                            $  2,500,000  $  2,500,000
        Additional paid in capital                    40,455        40,455
        Retained earnings                         17,484,063    14,659,694
                                                ------------- -------------
                                                $ 20,024,518  $ 17,200,149
                                                ------------- -------------


                                                $ 49,428,210 $ 29,610,380
                                                ============= =============

       NOTE: The balance sheet at July 31, 2000 has been taken from the
             audited financial statements at that date, and condensed.

                   See notes to condensed financial statements
                                      I-1                               -3-






<PAGE>
                            STERLING SUGARS, INC.
                 STATEMENT OF EARNINGS AND RETAINED EARNINGS
                                 (UNAUDITED)

                                                SIX MONTHS ENDED JANUARY 31
                                                ---------------------------
                                                      2001         2000
                                                    --------    ----------
        REVENUES:

         Sugar and molasses sales                $30,593,610   $32,559,949
         Interest earned                               1,765         1,723
         Mineral leases and royalties                511,126        51,563
         Other                                     1,461,948     1,626,208
                                                 ------------  ------------
                                                 $32,568,449   $34,239,443
                                                 ------------  ------------
        COSTS AND EXPENSES:

         Cost of products sold                   $26,964,374   $27,253,131
         General and administrative                  533,125       532,095
         Interest expense                            515,516       699,294
                                                 ------------  ------------
                                                 $28,013,015   $28,484,520
                                                 ------------  ------------

        NET EARNINGS BEFORE INCOME TAXES         $ 4,555,434   $ 5,754,923
        INCOME TAXES                               1,731,065     2,186,871
                                                 ------------  ------------
        NET EARNINGS                             $ 2,824,369   $ 3,568,052

        RETAINED EARNINGS AT BEGINNING OF PERIOD  14,659,694    13,743,691
                                                 ------------  ------------
        RETAINED EARNINGS AT END OF PERIOD       $17,484,063   $17,311,743
                                                 ============  ============

        NET EARNINGS PER SHARE                   $      1.13   $      1.43
                                                 ============  ============










                    See notes to condensed financial statements







                                      I-2                                 -4-








<PAGE>
                            STERLING SUGARS, INC.
                 STATEMENT OF EARNINGS AND RETAINED EARNINGS
                                 (UNAUDITED)

                                              THREE MONTHS ENDED JANUARY 31
                                              -----------------------------
                                                      2001         2000
                                                   ---------     ---------
        REVENUES:

         Sugar and molasses sales                $19,917,748   $23,380,224
         Interest earned                                -            1,661
         Mineral leases and royalties                320,992        24,012
         Other                                       904,852     1,115,225
                                                 ------------  ------------
                                                 $21,143,592   $24,521,122
                                                 ------------  ------------

        COSTS AND EXPENSES:

         Cost of products sold                   $16,263,013   $18,430,247
         General and administrative                  277,246       306,078
         Interest expense                            279,815       430,363
                                                 ------------  ------------
                                                 $16,820,074   $19,166,688
                                                 ------------  ------------

        NET EARNINGS BEFORE INCOME TAXES         $ 4,323,518   $ 5,354,434
        INCOME TAXES                               1,642,937     2,034,685
                                                 ------------  ------------
        NET EARNINGS                             $ 2,680,581   $ 3,319,749

        RETAINED EARNINGS AT BEGINNING OF PERIOD  14,803,482    13,991,994
                                                 ------------  ------------
        RETAINED EARNINGS AT END OF PERIOD       $17,484,063   $17,311,743
                                                 ============  ============

        NET EARNINGS (LOSS) PER SHARE            $      1.07   $      1.33
                                                 ============  ============












                    See notes to condensed financial statements






                                      I-3                                 -5-






<PAGE>
                            STERLING SUGARS, INC.
                           STATEMENT OF CASH FLOWS
                                (UNAUDITED)
                                                  SIX MONTHS ENDED JANUARY 31
                                                  ---------------------------
                                                         2001         2000
                                                      ---------   -----------

   OPERATING ACTIVITIES:
    Net earnings                                   $  2,824,369  $  3,568,052
    Adjustments to reconcile net earnings to net
     cash provided by operating activities:
     Depreciation                                     1,120,445     1,142,034
    Changes in operating assets and liabilities:
     Increase in accounts receivable                (10,624,204)  (14,056,608)
     Increase in inventories                        ( 9,620,777)  (13,392,479)
     Increase in accounts payable accrued
      expenses and due cane growers                   8,128,430     6,117,388
     Other items - net                              (    80,310)      345,964
                                                    ------------ ------------
    Net cash provided by operating activities      $( 8,252,047) $(16,275,649)
                                                    ------------ ------------
    INVESTING ACTIVITIES:
     Collection on notes receivable                       8,139         8,363
     Purchase of property, plant and equipment      (   816,241)  (   420,591)
                                                    -----------  ------------
     Net cash used in investing activities         $(   808,102) $(   412,228)
                                                    ------------ ------------
    FINANCING ACTIVITIES:
     Proceeds from short-term notes payable
      and long-term debt                           $ 25,981,809  $ 32,206,526
     Payments on short-term notes payable
      and long-term debt                            (16,847,556)  (15,982,875)
                                                    ------------ ------------
     Net cash provided by financing activities     $  9,134,253  $ 16,223,651
                                                    ------------ ------------

    Decrease in cash and temporary investments     $     74,104  $(   464,226)
    Cash and temporary investments at the
     beginning of the period                        (     6,176)      458,050
                                                    ------------ ------------
    Cash and temporary investments at the
     end of the period                             $     67,928  $(     6,176)
                                                    ============ ============

    Supplemental information:

     Interest paid                                 $    493,478  $    622,976
                                                    ===========  ============
     Income taxes paid                             $    275,685  $     60,470
                                                    ===========  ============




                  See notes to condensed financial statements


                                      I-4                                 -6-






<PAGE>
                            STERLING SUGARS, INC.
                   NOTES TO CONDENSED FINANCIAL STATEMENTS
              THREE AND SIX MONTHS ENDED JANUARY 31, 2001 AND 2000
                      (UNAUDITED)          (CONTINUED)


        A. CONDENSED FINANCIAL STATEMENTS:

             The condensed balance sheet as of January 31, 2001,
           the statements of earnings and retained earnings for the three
           and six months ending January 31, 2001 and 2000, and the condensed
           statements of cash flows for the six month periods then
           ended have been prepared by the Company, without audit.  In
           the opinion of management, all adjustments (which include
           only normal recurring adjustments) necessary to present
           fairly the financial position, results of operations and
           cash flows at January 31, 2001 and for all periods presented
           have been made.

             Certain information and footnote disclosures normally
           included in financial statements prepared in accordance with
           generally accepted accounting principles have been condensed
           or omitted.  It is suggested that these condensed financial
           statements be read in conjunction with the July 31, 2000
           report to stockholders.  The results of operations for the period
           ending January 31, 2001 are not necessarily indicative of the
           operating results expected for the full year.






























                                      I-5                                -7-







<PAGE>
                            STERLING SUGARS, INC.
                  MANAGEMENT'S DISCUSSION AND ANALYSIS OF
               FINANCIAL CONDITION AND RESULTS OF OPERATIONS

     Forward -Looking Information:

         This Form 10-Q contains certain statements that may be deemed
     "forward-looking statements."  All statements, other than historical
     statements, in this Form 10-Q that address activities, events or
     developments that the Company intends, expects, projects, believes or
     anticipates will or may occur in the future, are forward-looking
     statements.  Such statements are based on assumptions and analysis made
     by management of the Company in light of its experience and its
     perception of historical trends, current conditions, expected future
     developments and other factors it believes are appropriate.  The
     forward-looking statements in the Form 10-Q are also subject to a number
     of material risks and uncertainties, including weather conditions in
     south Louisiana during the sugarcane growing season, the success of
     sugarcane pest and disease abatement procedures, the quality and quantity
     of the sugarcane crops, mechanical failures at the Company's sugar mill,
     and prices for sugar and molasses produced by the Company.  Such
     forward-looking statements are not guarantees of future performance and
     actual results.  Development and business decisions may differ from
     those envisioned by such forward-looking statements.

     Results of Operations:

      General Information:

         The Company's grinding season commenced on September 20, 2000 and
     ended December 30, 2000.  A total of 1,063,646 tons of sugarcane were
     processed compared to 1,139,296 tons last year which was a record for
     the Company.

         Sugar yield was down this year to an estimated 197 pounds per ton
     of cane compared to the 207 pounds per ton of cane last year.  The
     lower yield this year can be attributed to a drought which occurred
     during the spring and summer growing season.  The drought also caused
     lower yields of sugarcane per acre resulting in less tons available
     for processing.

         The price the Company receives for its raw sugar has rebounded
     somewhat from the lows experienced last year although still below the
     averages received in the previous two years.  The Company received an
     average of 18.93 cents per pound for the six months ended January 31,
     2001 compared to 20.56 cents per pound for the same period last year.
     For the year ended July 31, 2000, the Company received 19.38 cents per
     pound and for the year ended July 31, 1999 the Company received 21.15
     cents per pound.  The Company systematically sells on the futures market
     throughout the year which tends to average out the highs and lows over
     a period of time.  At March 1, 2001, the November, 2001 price was
     quoted at 21.04 cents per pound.






                                      I-6                                -8-






<PAGE>

          As a consequence of the low price, the raw sugar inventory was
     recorded at market since market was below the cost of production.

         Blackstrap molasses production is estimated at 5.63 gallons per ton
     this year compared to 5.03 gallons per ton of cane last year. Total
     production of molasses was 5,983,151 gallons this year compared to
     5,729,922 gallons for the previous year.  The price for blackstrap
     molasses is currently quoted at $57.50 per ton compared to $35.00 per
     at the same time last year.

     Sugar and Molasses Sales:

         Sugar and molasses sales for the six months ended January 31, 2001
     and 2000 were as follows:
                                                2001            1999
                                             ----------------------------

         Raw sugar sales                     $29,216,426     $31,993,164
         Blackstrap molasses                   1,377,184         566,785
                                             ------------    ------------
                                             $30,593,610     $32,559,949
                                             ============    ============

         Sugar sales were down by $2,776,738 principally because of the lesser
     tonnage ground and the decreased yield of raw sugar.  Molasses sales
     were up substantially because of the sharply higher price mentioned
     above.   Raw sugar on hand at January 31, 2001 was approximately 25,000
     tons compared to 38,000 tons last year.  The smaller inventory at
     January 31, 2001 is generally a result of the lower yield of sugar and
     the lesser tons of cane processed.

     Interest Earned:

         Interest earned for the six month period ending January 31,
     2001 was $1,765 compared to $1,723 for the same period last year.
     Comparable figures were recorded for the three month periods ending
     January 31, 2001 and 2000.  They were $0 and $1,661 respectively.

     Mineral Leases and Royalties:

          Mineral leases and royalties were up considerably for the six
     months ended January 31, 2001 at $511,126 compared to $51,563 for the
     same period last year.  Royalties for the two periods were $484,539 and
     $27,551, respectively.  Mineral leases for the same periods were
     $26,587 and $24,012, respectively.  In November, 2000, the Company
     began receiving royalty payments from a new well named Zenor A16
     located near Patterson, La.  Payments received from the Zenor A16 well
     have been used to reduce the Company's long-term debt.  Such payments
     totaled $476,379.67 as of January 31, 2001.







                                      I-7                                -9-







<PAGE>

          The Company's activities with respect to oil and gas are limited to
     the granting of leases and the collection of bonuses, delay rentals and
     landowner royalties thereunder.  Accordingly only limited information,
     furnished primarily by the Company's lessees, has been included with
     respect to oil and gas operations affecting Company lands.  Complete
     information respecting these and related matters, such as proved
     reserves, are unavailable to the Company and cannot be obtained without
     unreasonable effort and expense.

     Other Revenues:

          Other revenues, which consist mainly of miscellaneous income items
     and cane land rentals, were $1,461,948 for the six months ended January
     31, 2001 and $1,626,208 for the six months ended January 31, 2000.  Cane
     land rentals for the current period were $1,314,060 compared to
     $1,549,948 last year. The lower cane land rentals are a direct result of
     the decreased yield of sugar and sugarcane.  The lower price for sugar
     also contributed to the decline.

     Cost of Products Sold:

          Cost of products sold totaled $26,964,374 for the six months ended
     January 31, 2001 and $27,253,131 for the six months ended January 31,
     2000.  The costs charged to this account are relative to the sales of
     raw sugar and molasses.

     General and Administrative Expenses:

          General and administrative expenses were $533,125 for the six
     months ended January 31, 2001 and $532,095 for the same period last
     year.  Expenses were comparable for the two years.

     Interest Expense:

          Interest expense was $515,516 compared to $699,294 for the six
     months ended January 31, 2001 and 2000, respectively.  The reduced
     interest cost resulted from lower overall interest rates and smaller
     capital requirments for the processing season.  Short-term debt
     outstanding at January 31, 2001 was $10,465,000 compared to
     $16,588,293 at January 31, 2000.  The lower capital requirments for the
     six months ended January 31, 2001 is primarily the result of the lower
     sugar price and lower proforma payments to farmers during the crop.

     Income Taxes:

          The income tax expense for the three and six month periods
     ending January 31, 2001 and 2000 were recorded at the statutory rate
     of 38 percent which reflects the 34 percent federal corporate rate plus
     4 percent state income taxes.








                                      I-8                                -10-






<PAGE>

     Liquidity and Capital Resources:

          At January 31, 2001, the Company had negative working capital of
     $1,649,948 compared to a negative working capital of $663,079 at July
     31, 2000.  Due to the seasonal nature of the industry, it is not
     uncommon to have a negative working capital balance at July 31 of
     each year or just before the start of the new season.  Normally, working
     capital for the six month period ending in January would be positive but
     is negative at January 31, 2001 because of long-term debt due in
     January, 2002 of $3,413,073 which has been included in the current
     portion long-term debt account.  The balance in that account at January
     31, 2001 is $4,172,032 compared to a balance of $932,680 at July 31,
     2000.  This is an increase of $3,239,352 in current liabilities which
     accounts for the negative working capital.  As mentioned earlier, the
     Company is paying down its' long-term debt with the proceeds from oil
     and gas royalties in anticipation of the large payment due in
     January, 2002.

         For the period February 1, 2001 to September 30, 2001, the Company
     has budgeted $3,290,600 for repairs and $1,250,000 for capital
     improvements to the factory.  The Company expects to finance the
     majority of these expenditures internally with any excess financed
     short-term through a bank with which the Company has a $12,000,000 line
     of credit.
































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<PAGE>


        PART II - OTHER INFORMATION


         ITEM 6 - EXHIBITS AND REPORTS ON FORM 8K
                  (a) Exhibits - None
                  (b) Reports on Form 8K
                      There were no reports filed on Form 8K for the period.
















































                                     II-1                                -12-







<PAGE>
                                  SIGNATURES



        Pursuant to the requirements of the Securities and Exchange Act
     of 1934, the registrant has duly caused this report to be signed
     on its behalf by the undersigned thereunto duly authorized.




                                             STERLING SUGARS, INC.
                                             ---------------------
                                                 (REGISTRANT)


     DATE     March 13, 2001               By /s/ Craig P. Caillier
         ---------------------------          ---------------------
                                              CRAIG P. CAILLIER
                                              PRESIDENT AND
                                              CHIEF EXECUTIVE OFFICER



    DATE      March 13, 2001               By /s/ Stanley H. Pipes
        ----------------------------          ---------------------
                                              STANLEY H. PIPES
                                              VICE PRESIDENT AND TREASURER






























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