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 April 30, 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 May 30, 1997. 
                                                  
                                                  
                                                  Total number of pages    13
                                                   
                                                                          -1-








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

                 Condensed balance sheets April 30, 1997 
                 (unaudited) and January 31, 1997                  I-1

                 Statements of earnings and retained earnings
                 Three months ended April 30, 1997 and 1996 
                 (unaudited)                                       I-2

                 Statements of cash flows 
                 Three months ended April 30, 1997 and 1996        I-3
                 (unaudited)
                 
                 Notes to condensed financial statements 
                 Three months ended April 30, 1997 and 1996        I-5 

         ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF  
                 FINANCIAL CONDITION AND RESULTS OF OPERATIONS     I-7 
                 
        PART II. OTHER INFORMATION:

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
























                                                                         
                     
                     
                                                                         -2-






                            STERLING SUGARS, INC.
                          CONDENSED BALANCE SHEETS

                                                   April 30,    January 31,
                                                     1997          1997
                                                   UNAUDITED       NOTE
     ASSETS:                                    ---------------------------
      CURRENT ASSETS:
         Cash and short-term investments        $     10,154  $    110,332   
         Accounts receivable                       3,624,988     1,890,398  
         Inventories                               2,739,520    11,667,948    
         Expenditures for future crops (Note B)    1,628,418       148,334    
         Deferred income taxes                       102,200       102,200 
         Other current assets                        449,421       557,298 
                                                ------------- -------------
            TOTAL CURRENT ASSETS                $  8,554,701  $ 14,476,510
                                                ------------- -------------
       Property, plant and equipment - net      $ 20,034,443  $ 18,970,789
                                                ------------- -------------
       Expenditures for future crops            $  1,389,338  $  1,389,338
                                                ------------- -------------
       Notes receivable - net of allowance      $    728,804  $    684,529
                                                ------------- -------------
       Deferred loan acquisition costs          $     60,372  $     63,463
                                                ------------- -------------
                                                $ 30,767,658  $ 35,584,629
                                                ============= ============= 
     LIABILITIES AND STOCKHOLDERS' EQUITY:
      CURRENT LIABILITIES:                                          
        Accounts payable and accrued expenses   $  4,108,647  $  6,728,264  
        Short-term debt                                 -        2,575,000
                                                ------------- ------------- 
            TOTAL CURRENT LIABILITIES           $  4,108,647  $  9,303,264
                                                ------------- -------------
       Long-term debt                           $  9,660,743  $  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                         13,457,113    13,125,035 
                                                ------------- -------------
                                                $ 15,997,568  $ 15,665,490
                                                ------------- -------------
                                                
                                                $ 30,767,658  $ 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-
                                    






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

                                                THREE MONTHS ENDED APRIL 30
                                                ---------------------------
                                                      1997         1996
                                                      ----         ----
        REVENUES:
         
         Sugar and molasses sales                $10,103,402   $11,237,659
         Interest earned                               1,181         8,324
         Mineral leases and royalties                 65,724        22,098
         Gain on sale of depreciable assets          (45,005)         -  
         Other                                        41,046        14,988  
                                                 ------------  ------------
                                                 $10,166,348   $11,283,069
                                                 ------------  ------------
        
        COSTS AND EXPENSES:
        
         Cost of products sold                   $ 9,205,641   $ 9,749,975
         General and administrative                  179,336       156,362
         Interest expense                            245,761       106,293
                                                 ------------  ------------
                                                 $ 9,630,738   $10,012,630 
                                                 ------------  ------------
        
        NET EARNINGS BEFORE INCOME TAXES         $   535,610   $ 1,270,439
        INCOME TAXES                                 203,532       482,767 
                                                 ------------  ------------
        NET EARNINGS                             $   332,078   $   787,672

        RETAINED EARNINGS AT BEGINNING OF PERIOD  13,125,035    11,088,065
                                                 ------------  ------------
        RETAINED EARNINGS AT END OF PERIOD       $13,457,113   $11,875,737
                                                 ============  ============

        NET EARNINGS PER SHARE                   $       .13   $       .32
                                                 ============  ============










                    See notes to condensed financial statements







                                      I-2                                 -4-






                            STERLING SUGARS, INC.
                           STATEMENT OF CASH FLOWS
                                (UNAUDITED)
                                                  THREE MONTHS ENDED APRIL 30
                                                  ---------------------------
                                                         1997       1996
                                                         ----       ----
   OPERATING ACTIVITIES:
    Net earnings                                    $   332,078  $   787,672
    Adjustments to reconcile net earnings to net
     cash provided by operating activities:
     Amoritization of loan costs                          3,091        2,954
     Depreciation                                       450,000      380,523
     Loss on sale of depreciable assets                  45,005         - 
    Changes in operating assets and liabilities: 
     Increase in accounts receivable                 (1,734,590)  (   21,131)
     Increase in notes receivable                    (   44,275)  (   64,052)
     Decrease in inventories                          8,928,428    9,525,003
     Decrease (Increase) in current assets              107,877   (  198,200)
     Increase in expenditures for future crops       (1,480,084)  (1,163,752)
     Decrease in accounts payable and accrued exp.   (2,619,617)  (1,773,566)
     Other items - net                               (  128,199)  (  133,231)
                                                    ------------ ------------
    Net cash provided by operating activities       $ 3,859,714  $ 7,342,220
                                                    ------------ ------------
    INVESTING ACTIVITIES:
     Purchase of property, plant and equipment      $(1,662,987) $(  588,217)
     Proceeds from sale of depreciable assets           104,328         -
                                                    -----------  ------------
     Net cash used in investing activities          $(1,558,659) $(  588,217)
                                                    ------------ ------------
    FINANCING ACTIVITIES:
     Proceeds from short-term debt                  $ 2,765,000   $  855,000    
     Proceeds from long-term debt                       217,343   (4,513,334)  
     Payments on short-term debt                     (5,340,000)  (   43,576)
     Payments on long-term debt                      (   43,576)        - 
                                                    ------------ ------------
     Net cash used in financing activities          $(2,401,233) $(3,701,910)
                                                    ------------ ------------
    
    (Decrease) Increase in cash and temporary       
     investments                                    $(  100,178) $ 3,052,093
    Cash and temporary investments at the 
     beginning of the period                            110,332      134,052
                                                    ------------ ------------
    Cash and temporary investments at the 
     end of the period                              $    10,154  $ 3,186,145
                                                    ============ ============

    

    Continued
               
                  See notes to condensed financial statements 






                                      I-3                                 -5-






                            STERLING SUGARS, INC. 
                           STATEMENT OF CASH FLOWS
                                (UNAUDITED)

      Supplemental information:

         Interest paid                              $  207,350  $   37,151
                                                    =========== ===========
         Income taxes paid                                -     $  103,500 
                                                    =========== ===========

                     

                                        
                                                                         
                                                                            











































                                      I-4                               -6-






                            STERLING SUGARS, INC. 
                   NOTES TO CONDENSED FINANCIAL STATEMENTS
                  THREE MONTHS ENDED APRIL 30, 1997 AND 1996
                      (UNAUDITED)          (CONTINUED)


        A. CONDENSED FINANCIAL STATEMENTS:

             The condensed balance sheets as of April 30, 1997, the
           statements of earnings and retained earnings for the three 
           months ending April 30, 1997 and 1996, and the condensed 
           statements of cash flows for the three month period 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 April 30, 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 April 30, 1997 are not necessarily indicative of the 
           operating results expected for the full year. 






























                                      

                                      I-5                                -7-







                            STERLING SUGARS, INC. 
                   NOTES TO CONDENSED FINANCIAL STATEMENTS
                  THREE MONTHS ENDED APRIL 30, 1997 AND 1996
                                (UNAUDITED)

        B. EXPENDITURES FOR FUTURE CROPS:

             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: 

                                                 THREE MONTHS ENDED APRIL 30
                                                 ---------------------------
                                                       1997        1996
                                                       ----        ----

           DEFERRED COSTS: (1997 AND 1996 CROPS)
            Factory                                $ 1,370,108  $ 1,037,521
            Plantations                                257,158      330,629
                                                   ------------ ------------
                                                   $ 1,627,266  $ 1,368,150     
            Land preparation and planting costs                            
             1998 and 1997 crops respectively            1,152       12,569
                                                   ------------ ------------
                                                   $ 1,628,418  $ 1,380,719
                                                   ============ ============

        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-6                                     -8-






                            STERLING SUGARS, INC.
                  MANAGEMENT'S DISCUSSION AND ANALYSIS OF 
               FINANCIAL CONDITION AND RESULTS OF OPERATIONS
             
     Results of Operations: 
     
      Sugar and Molasses Sales: 
      
         Sugar and molasses sales for the three months ended April 30, 1997 
     and 1996 were as follows:     
                                                   1997        1996
                                                  ------      ------
            Raw sugar sales                    $ 9,896,017  $10,947,640 
            Molasses sales                         207,385      290,019
                                               ------------ ------------
                                               $10,103,402  $11,237,659
                                               ============ ============
         For the first quarter of the Company's fiscal year ending January
     31, 1998 (fiscal 1998), sales of raw sugar (1996 crop) decreased com-
     pared to the same quarter ending in fiscal 1997 (1995 crop). This de-
     crease is the result of the Company having marketed less sugar during
     the current quarter.  At January 31, 1997, the Company had on hand
     approximately 26,812 tons of raw sugar available for sale to refiners
     as compared to 31,545 tons of raw sugar at January 31, 1996.  As of 
     April 30, 1997, the Company had sold and shipped 22,513 tons of raw 
     sugar and had on hand 4,299 tons.  For the quarter ending April 30, 
     1996, the Company had sold and shipped 24,624 tons of raw sugar and had
     on hand approximately 6,921 tons held in inventory.  The remaining 4,299 
     tons of raw sugar from the 1996 crop is expected to be sold and shipped
     by June, 1997.  The sugar price for the 1996 crop decreased and is  
     estimated at $22.19 cwt.  For the 1995 crop, the average price was    
     $22.52 cwt.  

         As of January 31, 1997, the Company had on hand approximately  
     767,096 gallons of molasses all of which had been sold as of April 30,     
     1997.  At January 31, 1996, the Company had approximately 714,343 
     gallons of molasses on hand all of which had been sold as of April 30, 
     1996.  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 the 1995 molasses crop compared
     to $.32 per gallon for the sale of the 1996 molasses crop.

     Interest Earned: 

         Interest earned for the quarter ended April 30, 1996 was $8,324
     compared to $1,181 for the same quarter ended April 30, 1997.  The 
     decrease for the current period is primarily attributable to the   
     decrease in short-term investments.  At January 31, 1997, the Company had
     cash and short-term investments of $10,154 compared to $3,186,145 at 
     January 31, 1996.
    
              

     Mineral Leases and Royalties:    
     
          For the quarter ended April 30, 1997, income from mineral leases
     and royalties increased to $65,724 compared to $22,098 for the period 
     


                                      I-7                                 -9-





                                                            
     ending in 1996.  The increase is attributable to the Company entering
     into two seismic agreements in the first quarter of fiscal 1998.  One 
     agreement is for six months, covers approximately 710 acres in St. Mary 
     Parish for $31,625.  The second agreement contains an eighteen month 
     term, covers 2,396 acres in St. Mary Parish for $71,891.  This agreement 
     contains an option agreement to lease the subject property to acquire an 
     oil and gas lease.  Royalty income remained consistent for the first 
     quarters of 1997 and 1996.
     
     Loss on the Sale of Depreciable Assets: 

          The Company recognized a loss on the sale of obsolete machinery and
     equipment for the three month period ending April 30, 1997 of $45,005.
     For the same period ending in 1996, the Company had no gains or losses
     from the sale of depreciable assets.  

     Other Revenues: 

          Other revenues, which consist mainly of miscellaneous income items,
     were $41,046 for the three month period ending April 30, 1997 and 
     $14,988 for the same period ending in 1996.  These revenues, which can
     vary considerably from year to year, generally include amounts received
     for the sale of scrap and other miscellaneous items.  
     
     Cost of Products Sold: 

          Cost of products sold for the three month periods ended April 30, 
     1997 and 1996 were $9,205,641 and $9,749,975, respectively.  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 months ended 
     April 30, 1997 were $179,336 compared to $156,362 for the same period
     in 1996.  The increase in these expenses during the current period is 
     primarily the result of increases in miscellaneous expense items. 

     Interest Expense: 

          Interest expense increased to $245,761 for the period ending 
     April 30, 1997 from $106,293 for the same period ending in 1996.  
     The increase in interest expense is primarily the result of interest
     expense incurred on long-term debt of $6,500,000.  The Company, in 
     December, 1996, made a long-term loan to finance the purchase of approx-
     imately 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 land
     rental income derived from the land applied to the loan.  Interest 
     incurred is paid quarterly.

     Income Taxes: 

          The income taxes for the three month period ending April 30, 
     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.                    
                     

                                      I-8                                -10-






     Liquidity and Capital Resources: 

          At April 30, 1997, the Company had working capital of $4,446,054
     compared to $5,173,246 at January 31, 1997.  The working capital ratios
     were 2.1 to 1 and 1.6 to 1, respectively.  
          For the coming year, with a good growing season, it is quite possible
     the Company's volume of cane to grind will increase.  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
     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 No. 5, various im-
     provements 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 for the coming 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 cane yard operations.
     As in the past, the Company expects to fund the cost of the capital 
     additions from working capital and short-term borrowings through lines 
     of credit available to the Company.
     
     Expenditures for Future Crops - Note B: 

      Factory Deferred Costs:

         Factory deferred costs for the three month period ended April 30, 
     1997 were $1,370,108.  Such costs for the same period in 1996 were       
     $1,037,521.  The increase for the current quarter is primarily 
     attributable to an increase in expenses incurred for idle season   
     maintenance and repairs compared to the same quarter ending April 30,
     1996.  The Company for the 1997 idle season has budgeted $2,250,210 
     for idle season repair and maintenance.  For the 1996 idle season the 
     Company had budgeted $2,161,000 for idle season repairs and maintenance.
     
     Plantation Deferred Costs: 

         Plantation deferred costs decreased to $257,158 for the three 
     month period ending April 30, 1997 from $330,629 for the same period
     in 1996.  The decrease in plantation deferred costs is primarily   
     attributable to the Company in February 1997 leasing to an independent
     farmer approximately 383 acres of its' agricultural division.  The       
     Company's farm division now consist of 1,584 acres.  
                          
                                                                      
         

                               





                     

                     
                                      I-9                               -11-






        PART II - 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                                -12-






                                  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     June 13, 1997                 By /S/ Craig P. Caillier
         ---------------------------          ---------------------
                                              CRAIG P. CAILLIER
                                              PRESIDENT AND 
                                              CHIEF EXECUTIVE OFFICER



    DATE      June 13, 1997                 By /S/ Stanley H. Pipes
        ----------------------------          ---------------------
                                              STANLEY H. PIPES 
                                              VICE PRESIDENT AND TREASURER































                                     II-2                                -13-