The present study is concerned with the selection of new medium for the production of alpha amylase by Bacillus licheniformis. Different agricultural by-products such as wheat bran, sunflower meal, cotton seed meal, soybean meal, rice husk or rice bran, were tested for the production of alpha amylase. Among different agricultural by-products evaluated, wheat bran was found to be the best basal and standardized medium for optimal production of alpha amyiase. The production was increased 2-folds when soluble starch was replaced with pearl millet starch at 1% level and nutrient broth concentrations was reduced from 1% level to 0.5%. The newly selected fermentation medium containing (% w/v) wheat bran 1.25, nutrient broth 0.5, pearl millet starch 1.0, lactose 0.5, NaCl 0.5, CaCl2 0.2 in 100 ml of phosphate buffer. The kinetic values of Y-p/x, Y-p/s, and Q(p) indicated that the production of enzyme was greater in newly selected medium than the conventional more expensive medium.