The present study reports on the isolation of several pigment-producing marine bacteria from a mangrove ecosystem in the state of Goa. The samples were collected from the core sediments from the estuarine region of Chorao Island, Dr. Salim Ali Bird Sanctuary. Four pigment-producing bacteria (M1 to M4) were isolated among which one of the bacterial strains M1 was capable of producing a red pigment, M2 produced yellow pigment, M3 produced pink pigment and M4 produced pale yellow colored pigments respectively. The red pigment-producing bacterium (M1) was of interest to us and hence we took up this culture for further study. Laboratory conditions were optimized for the growth of M1 using cheaply available agro materials to increase the yield of pigment production. Instead of using readymade media provided by companies, we used cereals to obtain the best yield economically for commercial production of the red pigment. Optimal growth of M1 was obtained by studying its growth at pH-6, 7, and 8, temperature- 25̊ C, 30̊ C, and 35̊ C, and salinity of 8.5 ppt, 17 ppt, and 34 ppt respectively for optimum production of the red pigment. The cereals used were Triticum (wheat), Glycine max (soya bean), Arachis hypogaea (groundnut), and Pennisetum glaucum (Bajra) which was used as a carbon source. In addition to cereals, peptone, yeast extract and, agar was used to form the media. The bacterial growth curve for M1 was plotted by reading O.D. at 270nm on a UV-Vis Spectrophotometer and presented in this report. Gram staining and DNA extraction were performed for the identification of bacterial species.