Beneficial effects of AM fungi as efficient scavengers of nutrients and as biocontrol agents have been well established in horticultural crop production. However, the utilization of these fungi is limited by the lack of availability of inoculum in large quantity This has been a bottle neck in popularization of the fungi for large scale application. Efforts have been made at the Indian Institute of Horticultural Research, Bangalore to increase the use of this fungus in horticultural crop production at the farmers level, by introducing a system of practices. On-farm inoculum production and application methods were demonstrated in several villages close to Bangalore: Mallasandra, Tiptur, Avadesh Halli, Kesture, Srinivasapura, Veerapura, Anabe, Malur, Kithanahalli and Jettipalya. Demonstrations were carried out in three steps. First , solarisation of the soil was done by covering the soil for three weeks with plastic sheets. Starter culture of AM (Glomus mosseae ) was applied in closely spaced rows followed by sowing of ragi (Eleusine coracana L.), a popular millet. Earlier studies, carried out by us, showed that ragi was a very good host for AM inoculum production. After twelve weeks, the shoots were harvested and used as the fodder. The root and the soil, dug to a depth of nine inches, were used as the inoculum. More than 3 tons of inoculum was produced in 25 square meter area. Utilisation of the inoculum in crops like banana and papaya cultivation was demonstrated to four farmers in two villages.. The farmers in all these villages were convinced about the usefulness of AM inoculum application and are training others in the production technique. INTRODUCTION The importance of arbuscular mycorrhizal (AM) fungi as efficient scavengers of nutrients and as bio-control agents in horticultural crop production is well known (Menge et al., 1978; Hughes et al., 1978 ; Sukhada , 1993). AM inoculum technology is limited due to difficulties in mass production and commercial distribution. Worldwide there are very few commercial companies selling AM inocula. Soil based inoculum can be produced in pots or on farm, and pot-based cultures are produced yearly by a few companies for certain target crops (Siverding, 1991). However, for fruit crops, large amounts of inoculum are required, which can be made available only using on-farm production, as soil inoculum is bulky and heavy and difficult to transport and market. Therefore it is probably better to make starter cultures available for farmers so that they can produce inoculum on their own land. An attempt was made at the Indian Institute of Horticultural Research, Bangalore to develop the inoculum production technique on farm and to demonstrate the benefit of VAM inoculation in horticultural crops such as banana and papaya. MATERIAL AND METHODS Demonstration of VAM Inoculum Production Selection of farmers and villages: Farmers from 8 different villages at a radius of Proc. XXVI IHC – Sustainability of Horticultural Systems Eds. L. Bertschinger and J.D. Anderson Acta Hort. 638, ISHS 2004 Publication supported by Can. Int. Dev. Agency (CIDA) 280 30-40 kilometers of Bangalore city who were receptive to adopting the technology were selected for demonstration of inoculum production techniques. Four farmers in two additional villages were also selected for demonstration of inoculum application to banana and papaya. Materials Required Polythene sheet to cover 5 x 5 m land area, formaldehyde 5% solution, starter culture, certified seeds of Finger Millet ( Eleusine coracana ). Banana suckers, VAM inoculum, Papaya seeds, polybags to raise nursery. Preparation of the Land Area for Inoculum Production An uncultivated area near the field to be inoculated was selected, cleared of weeds and the soil was turned over several times and leveled after break-up of large soil clods. Provision was made for drainage of rain or irrigation water. Land was sterilized by solarisation or by using 5% formaldehyde drenching depending upon the preference of the farmer. Solarisation was carried out by covering the soil with a polythene sheet 150 mm thick in bright sunlight. The borders of the polythene sheet were held in place by covering them with soil. This enabled sunlight to penetrate and create a warmer temperature in the soil beneath in order to kill the pathogenic microorganisms. After three weeks the sheets were uncovered and the soil was loosened or, in the case of plots which had been treated with formaldehyde, turned over every day for up to 7-10 days till the fumes were completely expelled . A small amount of inorganic fertilizer was added at the rate of 16-16-16mg10 kg/ha of NPK wherever the soil was very poor in nutrients. No organic manure was added. Starter cultures of AM Glomus mosseae obtained from a reliable source (Raukura Soil Plant Research Station, Hamilton, New Zealand), multiplied in pot culture in a glasshouse and containing a spore density of 5060 spores/g soil, were applied by hand in close rows at a distance of 15 cm. Ten kg of starter inoculum was used for 25 m. Certified seeds of finger millet (Eleusine coracana ) were sown on the inoculum in dense spacing. The plot was irrigated by hand. AM fungi multiplied on the root system of finger millet. Hygienic conditions were ensured around the field. After 12 weeks, the host plant was harvested by cutting it at ground level. Soil substrate along with the root of finger millet constituted the inoculum containing the infective propagules. Soil samples and roots were collected to assess spore count and colonization respectively in the laboratory. Demonstration of AM Application Trials in Banana and Papaya Production Systems Banana Application of AM in banana and papaya crop production was demonstrated in three farmers’ fields. Pits, 1m x 1m, were dug at a distance of 2 meters between plants and rows. Each pit was filled with 2 kg of neem cake at the bottom followed by 10 kg of farm yard manure, and the 250 g of AM inoculum prepared in the above manner containing 50 spores/g soil was placed on the top most layer. Banana suckers were placed on the inocula at the commonly used planting density of 2500 plants/ha and covered. The recommended basal dose of super phosphate was not applied. The recommended doses of nitrogen and potash were applied, i.e 110 g of urea and 100 g of muriate of potash per plant, four times at an interval of 60 days. Plants were irrigated normally. Uninoculated plants were separated from inoculated plants by four rows of plants grown according to the normal practice of the farmer. In total, 50 plants were maintained as treatment and as control. After two months of growth, roots were examined for colonization by the fungus. The time taken for flowers to emerge, plant height and girth were noted. The total yields of inoculated and control plants were recorded Papaya Papaya seedlings were raised in polybags containing 500 g of a sterilized Alfisol of pH 6.0 and with 0.72 % organic carbon. AM inoculum was mixed with the farm yard