A process for production of galacto-oligosaccharides is provided. The process for production of galacto-oligosaccharides includes growing Sporobolomyces singularis in a fermentation medium, harvesting the said microbes from the fermentation medium, inoculating the said microbes with lactose solution in a reactor and incubating in an aerobic condition to convert lactose into galacto-oligosaccharides. The process also includes separating the galacto-oligosaccharides from the microbes; filtering thus obtained galacto-oligosaccharides; and optionally making the powder form of galacto-oligosaccharides. The process for producing galacto-oligosaccharides provides high yield and high purity.