Xanthophyllomyces dendrorhous yeasts are capable of synthesizing carotenoid class astaxanthin pigment on agro-industrial wastes. The usefulness of fruit waste extract (FWE) as a sole source of energy for astaxanthin production was done using X. dendrorhous (MTCC No: 7536) and the Taguchi method of optimization technique was used to maximize pigment production conditions. Effect of key parameters like pH, temperature, and agitation was studied using L9 orthogonal array by three factor-three level approach and the significant parameters influencing pigment yield were tested out by analysis of variance. Significant parameters affecting pigment yield were suggested by statistical calculations and were tested by a validation test. Identified optimum conditions (pH-5, Temp-20 °C and Agitation-200 rpm) resulted in an increase of pigment production by 10 %. This study shows the use of medium from waste surplus like FWE for pigment production is promising and provides huge scope to be scaled-up for the large scale production.