SECURITIES AND EXCHANGE COMMISSION
                    WASHINGTON, D.C.  20549
                           FORM 8-K


                    Current Report Pursuant
                 to Section 13 or 15(d) of the 
                Securities Exchange Act of 1934

 Date of Report (Date of earliest event reported):  September 28, 1998

                     ERLY Industries Inc.
    (Exact name of registrant as specified in its charter)


                          California
        (State or other jurisdiction of incorporation)



        1-7894                                 95-2312900
(Commission File Number)                    (I.R.S. Employer 
                                           Identification No.)


10990 Wilshire Boulevard, #1800
Los Angeles, California                           90024-3955
(Address of Principal                             (Zip Code)
  Executive Offices)




                              (213) 879-1480
            (Registrant's telephone number, including area code)


                              Not Applicable
      (Former name or former address, if changed since last report)




Item 5.  Other Events

          Chapter 11 Filing By ERLY Industries Inc. 
          ------------------------------------------

          ERLY Industries Inc. ("ERLY"), filed a Chapter 11 bankruptcy
          petition in Corpus Christi, Texas on September 28, 1998.
          A press release reporting the Chapter 11 filing was issued by
          ERLY on September 28, 1998.  The information contained in
          such press release is attached hereto as Exhibit 99.



Item 7.  Financial Statements and Exhibits

         (c)  Exhibits

         Exhibit 99 - Press Release dated September 28, 1998


         



                           
                                SIGNATURE


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






Date: October 1, 1998              ERLY INDUSTRIES INC. 
                                   --------------------
                                   (Registrant)


                              By:  /s/ Gerald D. Murphy 
                                   ----------------------
                                   Chairman and 
                                   Chief Executive Officer