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, 2000

                                       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       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 March 2, 2000.


                                                  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, 2000
                 (unaudited) and July 31, 1999                     I-1

                 Statements of earnings and retained earnings
                 Six months ended January 31, 2000 (unaudited)
                 and 1999 (unaudited)                              I-2

                 Statements of earnings and retained earnings
                 Three months ended January 31, 2000 (unaudited)
                 and 1999 (unaudited)                              I-3

                 Statements of cash flows
                 Six months ended January 31, 2000 (unaudited)
                 and 1999 (unaudited)                              I-4

                 Notes to condensed financial statements
                 Three and six months ended January 31, 2000
                 and 1999                                          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,
                                                     2000          1999
                                                   UNAUDITED       NOTE
     ASSETS:                                    ---------------------------
      CURRENT ASSETS:
         Cash and short-term investments        $(     6,176) $    458,050
         Accounts receivable                      14,704,962       648,354
         Raw sugar and molasses inventories
           (at market)                            13,340,306          -
         Operating supplies - at cost                692,068       639,896
         Deferred income taxes                       377,800       377,800
         Other current assets                        254,561       706,883
                                                ------------- -------------
            TOTAL CURRENT ASSETS                $ 29,363,521  $  2,830,983
                                                ------------- -------------
       Property, plant and equipment - net      $ 24,186,948  $ 24,891,154
                                                ------------- -------------
       Expenditures for future crops            $  1,138,963  $  1,138,963
                                                ------------- -------------
       Notes receivable - net of allowance      $    582,945  $    512,246
                                                ------------- -------------
       Other assets                             $     56,108  $     38,511
                                                ------------- -------------
                                                $ 55,328,485  $ 29,411,857
                                                ============= =============
     LIABILITIES AND STOCKHOLDERS' EQUITY:
      CURRENT LIABILITIES:
        Notes Payable                           $ 16,588,293   $      -
        Accounts payable and accrued expenses      3,393,669     1,218,059
        Due cane growers                           5,602,030     1,660,252
        Current portion long-term debt             1,050,397       988,416
                                                ------------- -------------
            TOTAL CURRENT LIABILITIES           $ 26,634,389  $  3,866,727
                                                ------------- -------------
       Long-term debt                           $  7,464,898  $  7,883,984
                                                ------------- -------------
       Deferred income taxes                    $  1,377,000  $  1,377,000
                                                ------------- -------------

     STOCKHOLDERS' EQUITY:
        Common stock                            $  2,500,000  $  2,500,000
        Additional paid in capital                    40,455        40,455
        Retained earnings                         17,311,743    13,743,691
                                                ------------- -------------
                                                $ 19,852,198  $ 16,284,146
                                                ------------- -------------


                                                $ 55,328,485 $ 29,411,857
                                                ============= =============

       NOTE: The balance sheet at July 31, 1999 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
                                                ---------------------------
                                                      2000         1999
                                                    --------    ----------
        REVENUES:

         Sugar and molasses sales                $32,559,949   $29,149,561
         Interest earned                               1,723         1,980
         Mineral leases and royalties                 51,563        41,592
         Other                                     1,626,208     1,318,263
                                                 ------------  ------------
                                                 $34,239,443   $30,511,396
                                                 ------------  ------------

        COSTS AND EXPENSES:

         Cost of products sold                   $27,253,131   $26,021,795
         General and administrative                  532,095       399,518
         Interest expense                            699,294       610,686
                                                 ------------  ------------
                                                 $28,484,520   $27,031,999
                                                 ------------  ------------

        NET EARNINGS BEFORE INCOME TAXES         $ 5,754,923   $ 3,479,397
        INCOME TAXES                               2,186,871     1,322,170
                                                 ------------  ------------
        NET EARNINGS                             $ 3,568,052   $ 2,157,227

        RETAINED EARNINGS AT BEGINNING OF PERIOD  13,743,691    13,138,727
                                                 ------------  ------------
        RETAINED EARNINGS AT END OF PERIOD       $17,311,743   $15,295,954
                                                 ============  ============

        NET EARNINGS PER SHARE                   $      1.43   $       .86
                                                 ============  ============










                    See notes to condensed financial statements







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

                                              THREE MONTHS ENDED JANUARY 31
                                              -----------------------------
                                                      2000         1999
                                                   ---------     ---------
        REVENUES:

         Sugar and molasses sales                $23,380,224   $22,027,084
         Interest earned                               1,661            51
         Mineral leases and royalties                 24,012        20,278
         Other                                     1,115,225       884,986
                                                 ------------  ------------
                                                 $24,521,122   $22,932,399
                                                 ------------  ------------

        COSTS AND EXPENSES:

         Cost of products sold                   $18,430,247   $18,705,515
         General and administrative                  306,078       234,125
         Interest expense                            430,363       350,288
                                                 ------------  ------------
                                                 $19,166,688   $19,289,928
                                                 ------------  ------------

        NET EARNINGS BEFORE INCOME TAXES         $ 5,354,434   $ 3,642,471
        INCOME TAXES                               2,034,685     1,384,138
                                                 ------------  ------------
        NET EARNINGS                             $ 3,319,749   $ 2,258,333

        RETAINED EARNINGS AT BEGINNING OF PERIOD  13,991,994    13,037,621
                                                 ------------  ------------
        RETAINED EARNINGS AT END OF PERIOD       $17,311,743   $15,295,954
                                                 ============  ============

        NET EARNINGS (LOSS) PER SHARE            $      1.33   $       .90
                                                 ============  ============












                    See notes to condensed financial statements






                                      I-3                                 -5-






<PAGE>
                            STERLING SUGARS, INC.
                           STATEMENT OF CASH FLOWS
                                (UNAUDITED)
                                                  SIX MONTHS ENDED JANUARY 31
                                                  ---------------------------
                                                         2000       1999
                                                      ---------  ---------

   OPERATING ACTIVITIES:
    Net earnings                                   $  3,568,052  $  2,157,227
    Adjustments to reconcile net earnings to net
     cash provided by operating activities:
     Depreciation                                     1,142,034     1,109,744
    Changes in operating assets and liabilities:
     Increase in accounts receivable                (14,056,608)   (9,714,950)
     Increase in inventories                        (13,392,479)  (11,363,445)
     Increase in accounts payable accrued
      expenses and due cane growers                   6,117,388     8,995,402
     Other items - net                                  345,964       724,284
                                                    ------------ ------------
    Net cash provided by operating activities      $(16,275,649)  $(8,091,738)
                                                    ------------ ------------
    INVESTING ACTIVITIES:
     Collection on notes receivable                       8,363        44,232
     Purchase of property, plant and equipment     $(   420,591)  $(  582,808)
                                                    -----------  ------------
     Net cash used in investing activities         $(   412,228)  $(  538,576)
                                                    ------------ ------------
    FINANCING ACTIVITIES:
     Proceeds from short-term notes payable
      and long-term debt                           $ 32,206,526  $ 22,303,200
     Payments on short-term notes payable
      and long-term debt                            (15,982,875)  (13,832,774)
                                                    ------------ ------------
     Net cash provided by financing activities     $ 16,223,651  $  8,470,426
                                                    ------------ ------------

    Decrease in cash and temporary investments     $(   464,226) $(   159,888)
    Cash and temporary investments at the
     beginning of the period                            458,050       164,152
                                                    ------------ ------------
    Cash and temporary investments at the
     end of the period                             $(     6,176) $      4,264
                                                    ============ ============

    Supplemental information:

     Interest paid                                 $    622,976  $    610,686
                                                    ===========  ============
     Income taxes paid                             $     60,470  $      -0-
                                                    ===========  ============




                  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, 2000 AND 1999
                      (UNAUDITED)          (CONTINUED)


        A. CONDENSED FINANCIAL STATEMENTS:

             The condensed balance sheet as of January 31, 2000,
           the statements of earnings and retained earnings for the three
           and six months ending January 31, 2000 and 1999, 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, 2000 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, 1999
           report to stockholders.  The results of operations for the period
           ending January 31, 2000 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, 1999 and
     ended January 9, 2000.  A total of 1,139,296 tons of sugarcane were
     processed which was a company record.  The Company processed 1,031,144
     tons last year also a company record at that time.

         Sugar yield was up this year and is estimated at 209 pounds of sugar
     per ton of sugarcane compared to 192 pounds the previous year.  The
     higher yield for the current year was most likely caused by the weather
     patterns experienced during the spring and summer growing season which
     were favorable for cane growth and maturity.

         The price the Company receives for its raw sugar has declined
     subtantially compared to the previous year.  Last year, the Company's
     average price for raw sugar was approximately 21.15 cents per pound.
     The average price for the six months ended January 31, 2000 was 20.56
     cents per pound and is expected to go lower.  The Company systematically
     sells on the futures market throughout the year which cushioned the
     substantial price decline.  As an example of the price decline, the
     March, 2000 futures price was quoted at 22.16 cents per pound on June 16,
     1999 and had steadily declined to 16.70 cents per pound on February 8,
     2000.  Similar declines were noted in the other futures months.








                                      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.  Under
     the Federal Agriculture Improvement and Reform Act, the Company has the
     right to place the raw sugar inventory under loan at the rate of 18.35
     cents per pound.  The Company also has the right to forfeit the sugar
     under loan passing the title to the Commodity Credit Corporation at the
     rate of 17.35 cents per pound which is the 18.35 loan rate less a 1 cent
     penalty for the forfeiture. Of the approximately 76,000,000 pounds of
     raw sugar in inventory at January 31, 2000, the Company has placed
     35,000,000 pounds under loan.  Forfeiture of this sugar and the
     remaining unsold sugar in inventory will be considered depending on the
     price quoted in the open market at the time of sale.

         Blackstrap molasses production is estimated at 5.03 gallons per ton
     this year compared to 5.49 gallons per ton of cane last year. Total
     production of molasses was 5,729,922 gallons this year compared to
     5,659,536 gallons for the previous year.  However, the price for
     blackstrap molasses continues depressed being quoted at $35.00 per ton
     on February 28, 2000.  This is approximately the same price as last year
     but down from the price of $57.50 per ton two years ago.

     Sugar and Molasses Sales:

         Sugar and molasses sales for the six months ended January 31, 2000
     and 1999 were as follows:
                                                1999            1998
                                             ----------------------------

         Raw sugar sales                     $31,993,164     $28,488,330
         Blackstrap molasses                     566,785         661,231
                                             ------------    ------------
                                             $32,559,949     $29,149,561
                                             ============    ============

         Sugar sales were up by $3,504,834 principally because of the greater
     tonnage ground and the increased yield of raw sugar.  Molasses sales
     were down by $94,446 due to lesser demand for the product.   Raw sugar
     on hand at January 31, 2000 was approximately 38,000 tons compared to
     29,535 tons last year.  The larger inventory at January 31, 2000
     reflects the record production of the Company for the 1999 crop.  The
     Company produced approximately 119,170 tons of raw sugar for the 1999
     crop compared to 99,173 tons for the 1998 crop.

     Interest Earned:

         Interest earned for the six month period ending January 31,
     2000 was $1,723 compared to $1,980 for the same period last year.  The
     interest income for the current period reflects the smaller amount of
     funds available for short-term investment and to a lesser extent lower
     interest rates.  Comparable figures were recorded for the three month
     periods ending January 31, 2000 and 1999.  They were $1,661 and $51
     respectively.




                                      I-7                               -9-







<PAGE>

     Mineral Leases and Royalties:

          Mineral leases and royalties were up slightly for the six months
     ended January 31, 2000 at $51,563 compared to $41,592 for the same period
     last year.  A similar increase was registered in mineral leases and
     royalties for the three month periods ending January 31, 2000 and 1999.
     These figures were $24,012 and $20,278, respectively.

     Other Revenues:

          Other revenues, which consist mainly of miscellaneous income items
     and cane land rentals, were $1,626,208 for the six months ended January
     31, 2000 and $1,318,263 for the six months ended January 31, 1999.  Cane
     land rentals for the current period were $1,549,948 compared to
     $1,250,422 last year. The higher cane land rentals is a direct result of
     the purchase of 710 acres in LaFourche Parish and 414 acres in Iberia
     Parish.  Both tracts of land are leased to area farmers under rental
     agreements.

     Cost of Products Sold:

          Cost of products sold totaled $27,253,131 for the six months ended
     January 31, 2000 and $26,021,795 for the six months ended January 31,
     1999.  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 $532,095 for the six
     months ended January 31, 2000 and $399,518 for the same period last
     year.  The principal difference in two amounts is increases in legal
     expenses in conjunction with the reincorporation of the Company, higher
     hospitalization costs and small increases in numerous items in this
     category.

     Interest Expense:

          Interest expense was $699,294 compared to $610,686 for the six
     months ended January 31, 2000 and 1999, respectively.  The higher
     interest reflects the greater outstanding loan balance and to a lesser
     extent higher interest rates.

     Income Taxes:

          The income tax expense for the three and six month periods
     ending January 31, 2000 and 1999 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 January 31, 2000, the Company had working capital of $2,729,132
     compared to a negative working capital of $1,035,744 at July 31, 1999.
     Due to the seasonal nature of the industry, it is not uncommon to have
     a negative working capital balance just before the start of the new
     season.

                                      I-8                               -10-






<PAGE>

         For the six month period ending July 31, 2000, the Company has
     budgeted $3,986,900 for capital improvements and repairs to the factory
     and $20,261,003 (which includes short-term debt repayment) for general
     and administrative and other expenses.  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, 2000               By /s/ Craig P. Caillier
         ---------------------------          ---------------------
                                              CRAIG P. CAILLIER
                                              PRESIDENT AND
                                              CHIEF EXECUTIVE OFFICER



    DATE      March 13, 2000               By /s/ Stanley H. Pipes
        ----------------------------          ---------------------
                                              STANLEY H. PIPES
                                              VICE PRESIDENT AND TREASURER






























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