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 October 31, 1997 
         
                                       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
        

                 Delaware                              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       318 828 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 November 28, 1997. 
                                                                           
                                                  
                                                  Total number of pages    16
                                                                           -1-
                                                                           





<Page 2>
                            STERLING SUGARS, INC.
                            
                                 I N D E X 
                            
                                                                  PAGE
                                                                 NUMBER
        PART I:  FINANCIAL INFORMATION:
         
         ITEM 1. FINANCIAL STATEMENTS 

                 Condensed balance sheets October 31, 1997 
                 (unaudited) and January 31, 1997                  I-1

                 Statements of earnings and retained earnings
                 Nine months ended October 31, 1997 and 1996 
                 (unaudited)                                       I-2

                 Statements of earnings and retained earnings      I-3
                 Three months ended October 31, 1997 and 1996
                 (unaudited)

                 Statements of cash flows 
                 Nine months ended October 31, 1997 and 1996  
                 (unaudited)                                       I-4
                 
                 Notes to condensed financial statements 
                 Three & nine months ended October 31, 1997 and    I-6 
                 1996

         ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF  
                 FINANCIAL CONDITION AND RESULTS OF OPERATIONS     I-8 
                 
        PART II. OTHER INFORMATION:

         ITEM 5. OTHER INFORMATION                                II-1

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



















        
                                                                          -2-
                                                                            





                                                             
<Page 3>
                            STERLING SUGARS, INC.
                          CONDENSED BALANCE SHEETS

                                                  October 31,  January 31,
                                                     1997          1997
                                                   UNAUDITED       NOTE
     ASSETS:                                    ---------------------------
      CURRENT ASSETS:
         Cash and short-term investments        $(   119,331) $    110,332 
         Accounts receivable                       3,121,324     1,890,398
         Inventories                               6,825,615    11,667,948
         Expenditures for future crops (Note B)    2,551,999       148,334
         Deferred income taxes                       102,200       102,200
         Other current assets                        638,137       557,298 
                                                ------------- -------------
            TOTAL CURRENT ASSETS                $ 13,119,944  $ 14,476,510
                                                ------------- -------------
       Property, plant and equipment - net      $ 22,363,297  $ 18,970,789
                                                ------------- -------------
       Expenditures for future crops            $  1,389,338  $  1,389,338
                                                ------------- -------------
       Notes receivable - net of allowance      $    682,441  $    684,529
                                                ------------- -------------
       Deferred loan acquisition costs          $     54,190  $     63,463
                                                ------------- -------------
                                                $ 37,609,210  $ 35,584,629
                                                ============= ============= 
     LIABILITIES AND STOCKHOLDERS' EQUITY:
      CURRENT LIABILITIES: 
        Accounts payable and accrued expenses   $  5,540,057  $  6,728,264
        Short-term debt                            6,000,000     2,575,000 
                                                 ------------ ------------- 
            TOTAL CURRENT LIABILITIES           $ 11,540,057  $  9,303,264
                                                ------------- -------------
       Long-term debt                           $  9,485,020  $  9,615,175
                                                ------------- -------------
       Deferred income taxes                    $  1,000,700  $  1,000,700
                                                ------------- -------------
                                           
     STOCKHOLDERS' EQUITY: 
        Common stock                            $  2,500,000  $  2,500,000
        Additional paid in capital (Note C)           40,455        40,455
        Retained earnings                         13,042,978    13,125,035 
                                                 ------------- -------------
                                                 $ 15,583,433 $ 15,665,490
                                                 ------------- -------------
                                                 $ 37,609,210 $ 35,584,629
                                                 ============= ============= 
       
       NOTE: The balance sheet at January 31, 1997 has been taken from the 
             audited financial statements at that date, and condensed.

                   See notes to condensed financial statements



 
                                      I-1                                -3-
                                      






<Page 4>
                            STERLING SUGARS, INC.
                 STATEMENT OF EARNINGS AND RETAINED EARNINGS
                                 (UNAUDITED)

                                               NINE MONTHS ENDED OCTOBER 31
                                               ----------------------------
                                                      1997         1996
                                                     ------       ------
        REVENUES:
         
         Sugar and molasses sales                $12,290,238   $14,574,935  
         Interest earned                              10,893        42,709
         Mineral leases and royalties                131,702        64,914   
         Loss on sale of depreciable assets          (25,921)         (894) 
         Other                                       160,161       202,583  
                                                 ------------  ------------
                                                 $12,567,073   $14,884,247
                                                 ------------  ------------
        
        COSTS AND EXPENSES:
        
         Cost of products sold                   $11,370,015   $12,015,435
         General and administrative                  568,531       524,785
         Interest expense                            760,877       301,541
                                                 ------------  ------------
                                                 $12,699,423   $12,841,761 
                                                 ------------  ------------
        
        NET EARNINGS (LOSS) BEFORE INCOME TAXES  $  (132,350)  $ 2,042,486
        INCOME TAX EXPENSE (CREDIT)                 ( 50,293)      776,145
                                                 ------------  ------------
        NET EARNINGS (LOSS)                      $  ( 82,057)  $ 1,266,341 

        RETAINED EARNINGS AT BEGINNING OF PERIOD  13,125,035    11,088,065
                                                 ------------  ------------
        RETAINED EARNINGS AT END OF PERIOD       $13,042,978   $12,354,406 
                                                 ============  ============

        NET EARNINGS (LOSS) PER SHARE            $      (.03)  $       .51
                                                 ============  ============













                    See notes to condensed financial statements


                                      
                                      I-2                                 -4-







<Page 5>
                            STERLING SUGARS, INC.
                 STATEMENT OF EARNINGS AND RETAINED EARNINGS
                                 (UNAUDITED)

                                              THREE MONTHS ENDED OCTOBER 31
                                              -----------------------------
                                                      1997           1996
                                                     ------         ------
        REVENUES:
         
         Sugar and molasses sales                $    (6,938)  $    49,063
         Interest earned                                 994         5,979
         Mineral leases and royalties                 46,724        20,801
         Loss on sale of depreciable assets           (1,123)         -    
         Other                                        52,666        40,291 
                                                 ------------  ------------
                                                 $    92,323   $   116,134  
                                                 ------------  ------------
        

        COSTS AND EXPENSES:
        
         Cost of products sold                   $      -0-    $     -0-
         General and administrative                  184,890       124,022 
         Interest expense                            290,630       101,429 
                                                 ------------  ------------
                                                 $   475,520   $   225,451 
                                                 ------------  ------------
        
        NET LOSS BEFORE INCOME TAXES             $(  383,197)  $(  109,317) 
        INCOME TAX CREDIT                         (  145,615)   (   41,540)
                                                 ------------  ------------
        NET LOSS                                 $(  237,582)  $(   67,777)
        
        RETAINED EARNINGS AT BEGINNING OF PERIOD  13,280,560    12,422,183
                                                 ------------  ------------
        RETAINED EARNINGS AT END OF PERIOD       $13,042,978   $12,354,406
                                                 ============  ============

        NET LOSS PER SHARE                       $(      .10)  $(      .03)
                                                 ============  ============













                   See notes to condensed financial statements


                                      I-3                                 -5-







<Page 6>
                            STERLING SUGARS, INC.
                           STATEMENT OF CASH FLOWS
                                (UNAUDITED)
                                                NINE MONTHS ENDED OCTOBER 31
                                                ----------------------------
                                                         1997         1996
                                                        ------       ------
   OPERATING ACTIVITIES:
    Net earnings (Loss)                             $(   82,057) $ 1,266,341   
    Adjustments to reconcile net earnings to 
    net cash provided by (used in) operating activities:
     Amoritization of loan costs                          9,273        8,860 
     Depreciation                                     2,108,356    1,128,187
     Loss on sale of depreciable assets                  25,921          894
    Changes in operating assets and liabilities: 
     Increase in accounts receivable                 (1,230,926)  (3,340,753)
     (Increase) decrease in notes receivable              2,088   (   44,921)
     Decrease in inventories                          4,842,333    9,456,955
     Increase in other current assets                (   80,839)  (  125,266)
     Increase in expenditures for future crops       (2,403,665)  (3,051,115)
     Decrease in accounts payable         
      and accrued expenses                           (1,294,578)  (1,665,060)
     Other items - net                                     -      (  160,758)
                                                    ------------ ------------
    Net cash provided by operating activities       $ 1,895,906  $ 3,473,364
                                                    ------------ ------------

    INVESTING ACTIVITIES:
     Purchase of property, plant and equipment      $(5,652,263) $(3,076,188)
     Proceeds from sale of depreciable assets           125,478        2,500 
                                                    -----------  ------------
     Net cash used in investing activities          $(5,526,785) $(3,073,688)
                                                    ------------ ------------
    FINANCING ACTIVITIES:
     Proceeds from short-term debt                  $10,168,000  $ 4,219,000
     Payments on short-term debt                     (6,743,000)  (4,513,334)
     Proceeds from long-term debt                       492,317         -
     Payments on long-term debt                      (  516,101)  (  168,951)
                                                    ------------ ------------
     Net cash provided by (used in) financing       
       activities                                   $ 3,401,216  $(  463,285)
                                                    ------------ ------------
    
    Decrease in cash and temporary investments      $(  229,663) $(   63,609)
    Cash and temporary investments at the 
     beginning of the period                            110,332      134,052  
                                                    ------------ ------------
    Cash and temporary investments at the 
     end of the period                              $(  119,331) $    70,443 
                                                    ============ ============
    Continued
                   
                                                     
                   See notes to condensed financial statements 

                                       
                                       
                                       I-4                                 -6-







<Page 7>
                            STERLING SUGARS, INC. 
                           STATEMENT OF CASH FLOWS
                                (UNAUDITED)

      Supplemental information:

         Interest paid                              $  725,340  $  220,124  
                                                    =========== ===========
         Income taxes paid                          $     -     $  373,500     
                                                    =========== ===========
      








































                                      
                                      




                                      I-5                               -7-







<Page 8>

                            STERLING SUGARS, INC. 
                   NOTES TO CONDENSED FINANCIAL STATEMENTS
            THREE AND NINE MONTHS ENDED OCTOBER 31, 1997 AND 1996
                      (UNAUDITED)          (CONTINUED)


        A. CONDENSED FINANCIAL STATEMENTS:

             The condensed balance sheets as of October 31, 1997, the
           statements of earnings and retained earnings for the three 
           and nine months ending October 31, 1997 and 1996, and the  
           condensed statements of cash flows for the nine 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 October 31, 1997 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 1997 annual report
           to stockholders.  The results of operations for the period
           ending October 31, 1997 are not necessarily indicative of the 
           operating results expected for the full year. 




























                                     
                                      I-6                                -8-







<Page 9>

                            STERLING SUGARS, INC. 
                   NOTES TO CONDENSED FINANCIAL STATEMENTS
            THREE AND NINE MONTHS ENDED OCTOBER 31, 1997 AND 1996
                                (UNAUDITED)

        B. EXPENDITURES FOR FUTURE CROPS:

             Due to the seasonality of the Company's business, recognition 
        of expenditures incurred and income earned from sugar operations for
        the 1997 and 1996 crops have been deferred in order to properly  
        match revenues and expenses. The deferred items are as follows: 

                                                NINE MONTHS ENDED OCTOBER 31
                                                ----------------------------
                                                       1997        1996
                                                      ------      ------

            Sugar and molasses sales               $ 7,175,800  $ 5,006,880
                                                   ------------ ------------
            Costs and expenses:
               Factory                             $15,183,511  $ 9,712,677
               Plantations                             458,836      562,652 
                                                   ------------ ------------
                                                   $15,642,347  $10,275,329     
                                                   ------------ ------------
            Excess costs over sales                $ 8,466,547  $ 5,268,449 
            Raw sugar and molasses inventories      (5,942,386)  (2,124,417)
                                                   ------------ ------------
                                                   $ 2,524,161  $ 3,144,032
            Land preparation and planting costs                            
             1998 and 1997 crops respectively           27,838      124,050 
                                                   ------------ ------------
                                                   $ 2,551,999  $ 3,268,082 
                                                   ============ ============

        C. ADDITIONAL PAID IN CAPITAL: 
        
             As discussed in Form 10-K, filed for the year ended January 31,
           1996, the Company entered into a technical service agreement with
           M. A. Patout & Son, Ltd. (Patout).  The agreement provided an 
           option for Patout to purchase 50,000 shares of the Company's 
           treasury stock at a price of $3.25 per share.  In April, 1995 
           Patout exercised its option.   


             




                                                                           



                                                                        
                                       I-7                               -9-








<Page 10>
                            STERLING SUGARS, INC.
                  MANAGEMENT'S DISCUSSION AND ANALYSIS OF 
               FINANCIAL CONDITION AND RESULTS OF OPERATIONS
             
     Results of Operations: 
     
      General Information: 
      
         The Company's 1997 sugarcane grinding season (1997 crop) began on  
     September 30, 1997.  Generally, the Company plans to begin operations
     on or about October 1st of each year.   At the present time, 
     the Company anticipates processing approximately 905,000 tons of cane 
     and expects to end the processing season on or about December 28, 1997.  
     For the 1996 crop, the Company processed a total of 821,184 tons of cane.  
     Thus far, this years' grinding operations have progressed fairly well.  
     At present, the average daily grinding rate is 10,123 tons of cane 
     compared to 9,803 tons of cane per day last year.  Sugar yields per ton 
     of cane for the 1997 crop are estimated at 210 pounds per ton of cane.  
     For the 1996 crop, the sugar yield was 198 pounds per ton of cane.  
          The market price received from sales of raw sugar produced from 
     the 1996 crop was $22.15 cwt.  For the 1997 crop, the market price is 
     projected to be about $21.90 cwt. or about $.25 cwt.less than the price
     received for the 1996 crop. 
     
     Sugar and Molasses Sales:
      
          Sugar and molasses sales for the nine months ended October 31,  
     1997 and 1996 were as follows:  
                                                1997         1996
                                               ------       ------
              Raw sugar sales              $12,082,853   $14,232,243   
              Molasses sales                   207,385       342,692
                                           ------------ -------------
                                           $12,290,238   $14,574,935 
                                           ============ =============
      
      
          For the first nine months of the Company's fiscal year ending 
     January 31, 1998 (fiscal 1998), sales of raw sugar (1996 crop)
     decreased compared to the same period ending in fiscal 1997 (1995
     crop).  This decrease is the result of the Company having less sugar 
     available to market during the current period. At January 31, 1996, the 
     Company had on hand approximately 31,545 tons of raw sugar available for 
     sale to refiners compared to 27,713 tons of raw sugar at January 31, 
     1997.  As of July 31st of both years, the Company had sold and shipped
     its' raw sugar held in inventory.

     










                                       I-8                                -10-






<Page 11> 

          As of January 31, 1996, the Company had on hand approximately 
     714,343 gallons of molasses all of which had been sold as of April 30,
     1996.  At January 31, 1997, the Company had approximately 767,096 
     gallons of molasses on hand all of which had been sold as of April 30,
     1997. Although slightly more molasses was sold in the 1997 period, the 
     price per gallon decreased for the 1996 molasses crop.  The Company
     received $.40 per gallon from the sale of 1995 molasses crop compared to
     $.32 per gallon for the sale of the 1996 molasses crop.
     
     Interest Earned: 

         Interest earned for the quarter and nine month periods ending 
     October 31, 1997 decreased compared to the same periods ending October 
     31, 1996.  Interest earned for the nine month period ending October 31, 
     1997 was $10,893.  For the nine month period ending October 31, 1996,
     interest earned was $42,709.  The decrease for the current periods is 
     primarily attributable to the decrease in short-term investments.   
     At January 31, 1997, the Company had short-term investments of $10,154  
     compared to $3,186,145 at January 31, 1996.
     
     Mineral Leases and Royalties: 

          For the nine month period ended October 31, 1997, income from 
     mineral leases and royalties increased to $131,702 compared to 
     $64,914 for the period ending in 1996.  The increase is attributable
     to the Company entering into two seismic agreements in the first quarter 
     of fiscal 1998 and one oil and gas lease and one seismic lease option 
     agreement in the third quarter of fiscal 1998.  One agreement, for
     $31,625, is for six months and covers approximately 710 acres in St.
     Mary Parish.  The second agreement, for $71,891, contains an eighteen
     month term and covers 2,396 acres in St. Mary Parish.  This agreement
     contains an option to lease the subject property for oil and gas
     exploration.  In the third quarter of fiscal 1998, the Company entered
     into an oil and gas lease on approximately 41 acres in St. Mary Parish
     for $7,283. The agreement has a three year primary term.  Also in the
     third quarter, the Company entered into a seismic and lease option
     agreement dated August 1, 1997.  The agreement covers approximately
     320 acres for $40,000.  This lease carries a five year primary term.
          
     Loss on the Sale of Depreciable Assets: 

          The Company recognized a loss on the sale of obsolete machinery 
     and equipment for the nine month period ending October 31, 1997 of 
     $25,921.  For the same period ending in 1996, the Company recognized\
     a loss of $894.  For the three month period ending October 31, 1997,
     a loss of $1,123 was recognized from the sale of obsolete equipment.
     
     Other Revenues: 

          Other revenues which consist mainly of miscellaneous income items,
     were $52,666 and $160,161 for the three and nine month periods ending 
     October 31, 1997, respectively.  For the three and nine month periods
     ending October 31, 1996, other revenues were $40,291 and $202,583, 
     respectively.  These revenues, which can vary considerably from year to 
     year, generally include amounts received for the sale of scrap and other 
     miscellaneous items.  
     
                                         I-9                              -11-






<Page 12>                                                                   

     Cost of Products Sold: 

          Cost of products sold decreased for the nine month period ending 
     October 31, 1997 and was $11,370,015.  For the same nine month period 
     in 1996, cost of products sold was $12,015,435.  Costs relating to sales 
     are charged to cost of products sold.  Accordingly, costs have decreased 
     for 1997 as would be expected with the decrease in sales.  
     
     General and Administrative Expenses: 

          General and administrative expenses for the three and nine month 
     periods ending October 31, 1997 have increased compared to the same 
     periods ending in 1996.  These expenses were $568,531 and $524,785 for
     the nine month periods ending October 31, 1997 and 1996, respectively. 
     were $489,939.  The increase is primarily attributable to increases in
     expense accruals for the Company's retirement plans and other 
     miscellaneous expense items.
     
     Interest Expense: 

          Interest expense increased for the three and nine month periods 
     ending October 31, 1997 compared to the same periods in 1996.  The  
     increase in interest expense is primarily the result of the interest 
     expense incurred on long-term debt of $6,500,000.  The Conpany, in 
     December, 1996, made a long-term loan to finance the purchase of 
     approximately 8,519 acres of land in St. Mary Parish of which 4,863 
     acres is cultivable cane land.  The acquisition is viewed as good for  
     the Company in that it will secure and maintain the Company's current
     cane supply.  The loan agreement contains a ten year payout with all 
     annual cane rental income derived from the land applied to the loan.
     Interest incurred is paid quarterly.

     Income Taxes: 

          The income tax expense (credit) for the three and nine month periods 
     ending October 31, 1997 and 1996 were recorded at the statutory rate of  
     38 percent which reflects the 34 percent federal corporate rate plus 4 
     percent state income taxes.  

     Liquidity and Capital Resources: 

          At October 31, 1997, the Company had working capital of $1,579,887
     compared to $5,173,246 at January 31, 1997.  The working capital ratios
     were 1.1 to 1 and 1.6 to 1, respectively.  












                                     I-10                                -12-







<Page 13> 

          For the 1997 grinding season, crop estimates show an increase in 
     cane supply primarily because of an excellent growing season.  Along 
     with this increase is a trend among sugarcane farmers in Louisiana,
     including our area, to convert harvesting practices from whole stalk
     to billet combines.  Most factory managers would agree the combine 
     system at this time is more favorable to farmers than factories.  
     Despite this fact, it is important that the Company accomodate its'
     farmers and as a result, the Company has budgeted $750,000 in capital
     additions for handling billet cane on the cane yard.  The Company has
     also budgeted $2,700,000 in other capital additions which include
     improvements to steam boiler #5, various improvements to steam boilers
     nos. 1, 2, 4 and 6, installation of two 1,500 kw generators, a cane 
     wash table and installation of one vacuum pan for the raw house.
     The improvements this year, other than the billet cane handling
     improvements, will aid the Company in becoming more efficient in 
     operating the factory.  The additions for handling billet cane is 
     expected to increase the factory cost of yard operations.  
          Thus far, the Company has sustained a 10,123 ton per day average
     daily grinding rate after 75 days of the grinding season.  The Company
     predicts the season will go 89 days and process about 905,000 tons of 
     cane up from 821,184 tons of cane processed for the 1996 crop which
     was processed in 84 days.  
          As in past years, the Company began making short-term loans during
     the idle season to fund idle season costs, capital additions, as well
     as, the first weeks of grinding operations.  The short-term funding 
     requirement has not exceeded $6,000,000 for the 1997 crop.
     
     Expenditures for Future Crops - Note B: 

          In order to match revenue and expenses, sugar and molasses sales
      relating to the 1997 crop of $7,175,800 have been deferred.  Sales 
      of $5,006,880 relating to the 1996 crop were deferred last year. 
      Processing for the 1997 crop began September 30, 1997 and for the 1996
      crop processing began October 11, 1996.  The increase in deferred 
      sales in 1997 is attributable to the Company shipping more raw sugar
      during the month of October, 1997 compared to the same period in 1996.
      In October, 1997, the Company had 31 grinding days compared to 20 
      grinding days in 1996. 

      Factory Deferred Costs:

         Factory deferred costs increased to $15,183,511 for the nine months 
     ended October 31, 1997 from $9,712,677 for the nine months ended        
     October 31, 1996.  The increase in deferred costs is primarily  
     attributable to a increase in the amount of sugarcane processed as of  
     October 31, 1997 as compared to October 31, 1996.  For the 1997 crop, 
     the Company has processed a total of 295,123 tons of cane compared to  
     176,450 tons of cane for the 1996 crop as of October 31, 1996.  
     
     Plantation Deferred Costs: 

         Plantation deferred costs were $458,836 for the nine month period 
     ending October 31, 1997 compared to $562,652 for the same period in
     1996.  The decrease in the current period primarily results from the 
     Company in February, 1997 leasing to an independent farmer 
     approximately 383 acres of agricultural land that had been farmed by 
     the Company. 
                                     I-11                               -13-
     





<Page 14>
     
     Land Preparation and Deferred Planting Costs:  
     
          Land preparation and deferred planting costs for the 1998 and 1997
     crops have decreased for the nine month period ending in 1997 and were
     $27,838 for the period ending October 31, 1997 and $124,050 for the 
     period ending October 31, 1996.  For the 1998 crop, the Company 
     maintained approximately 200 acres of fallow land.  For the 1997 crop, 
     fallow land totaled approximately 423 acres.  The decrease in 
     deferred land preparation and planting costs is primarily attributable
     to the Company in February, 1997 leasing to an independent farmer
     approximately 383 acres of agricultural land that had been farmed by 
     the Company.  The decrease is also attributable to the Company during
     1997 incurring costs to improve drainage systems and improve all 
     lands farmed by the Company, including fallow lands.
     


         
        


         
         
         
         
         
         
         
         
         
         
         
         
         
         
         
         
         
         
         
         
         
         
         
         
         
         
         
         
         
         
         
         
         
         
                                  
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<Page 15>         
         
         
         
         PART II - OTHER INFORMATION
         
         ITEM 5  - OTHER INFORMATION
         
         ITEM 6  - EXHIBITS AND REPORTS ON FORM 8K
                   (a) Exhibits - None 
                   (b) Reports on Form 8K 
                      No reports on Form 8K have been filed during the 
                      quarter for which this report is filed.
































                                    
                                    
                                    
                                    
                                    
                                    
                                    
                                    
                                    
                                    
                                    
                                    
                                    II-1                                -15-
         

                                     





<Page 16>

                                  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   December 12, 1997                By /s/ Craig P. Caillier
         ---------------------------         ------------------------
                                              CRAIG P. CAILLIER
                                              PRESIDENT AND CEO
                                              



    DATE    December 12, 1997                By /s/ Stanley H. Pipes
        ----------------------------         -------------------------
                                              STANLEY H. PIPES 
                                              VICE PRESIDENT AND TREASURER



























                                     
                                     II-2                                -16-