The present invention provides the method for producing a specific catalyst for biodiesel production. To increase the purity and performance of catalyst, calcium acetate is used as the source for producing calcium oxide as catalyst. y-alumina powder is heated at a temperature between 500 °C to 700 °C for about an hour. A desired amount of calcium acetate is dissolved in water, said desired amount of calcium acetate is predetermined to achieve weight ratio of calcium oxide and alumina 0.6: 1 to 1.2: 1. The dissolved calcium acetate is then mixed with alumina for about four hours. The mixture is then heated above boiling point to evaporate water. The mixture is then calcined at a temperature between 600 °C to 900 °C for about five hours to obtain the catalyst.