Monascus ruber culture was cultured in submerged and Solid-state fermentation using rice as a substrate for the production of pigments using a fungal culture of M. ruber. It was used to study the regulation of pigment production by nitrogen sources. We found that the formation of red pigments by yeast extract as the sole nitrogen source. In this study, yeast extract was found to yield maximum pigment 0.524 (370nm), 1.084 (400nm) and 0.616 (500nm) Units/g of red yeast rice for orange, yellow and red pigments respectively. The highest red yeast rice yield of 21% was recorded in yeast extract treatment. The inorganic nitrogen sources were found to produce better results. It was used to study the regulation of pigment production by carbon sources. We found that the formation of red pigments by starch as the sole carbon source. In this study, starch was found to yield maximum pigment 0.599 (370 nm), 1.058 (400 nm) and 0.639 (500 nm) U/g of red yeast rice for orange, yellow and red pigments respectively. The highest red yeast rice yield of 19 % was recorded in starch treatment. Therefore it is concluded from the study the best nitrogen source is yeast extract and the carbon source is starch for culturing of Monascus ruber in solid state fermentation.