Production of high titers of an alkaline, extracellular and thermo-tolerant pectinase by a newly isolated yeast Pseudozyma sp. SPJ was carried out in solid state fermentation (SSF). Among all the agro-industrial residues used as substrate, citrus peel was found to be the best. Maximum pectinase production was observed after 72 h of incubation at 32°C. The moistening agent containing MgSO4⋅7H2O, KH2PO4 and (NH4)2SO4, at pH 7.0 with a substrate-to-moisture ratio of 1:3, was found to be most effective. No additive was required to supplement the substrate for production of the enzyme. Use of an economical substrate (citrus peel) and only a little mineral salt solution without any other supplement, made pectinase production cost-effective. A commendable enzyme titer (279,600 ± 897 U g−1 solid substrate) by Pseudozyma sp. SPJ under such an economic solid state cultivation is reported for the first time. This enzyme could be applied in various industries (works within a good temperature and pH range) and in biodegradation of citrus waste.