The most abundant organic compound and a prominent carbonaceous consistuent of higher plants and probably is cellulose. Because a large part of the vegetation added to soil is cellulose, the decomposition of the carbohydrate has a special significance in the biological cycle of carbon. Cellulose is a polysaccharide composed of glucose units in a long linear chain linked together by β1,4 glycosidic bonds. Degradation of cellulose is brought about by fungi, bacteria and actinomycetes by the secretion of extracellular enzyme, cellulase. It is a complex enzyme composed of three components, endoglucanase, exoglucanase and a β-glucosidase. Cellulase has a wide application in textile industry, in laundry detergents, in pulp and paper industry, in pharmaceutical, commercial food processing in coffee, in fermentation of biomass into bio fuels, and also used as a treatment for phytobezoars, a form of cellulose bezoar found in human stomach. Sugarcane baggase and Paddy straw are a complex substrates obtained from processing of sugarcane and drying of paddy. Due to their abundant availability, it serve as an ideal substrate for microbial processes for the production of value added products. The present study was conducted to isolate and identify Aspergillus sp and Penicillium sp from the soil and to estimate cellulase enzyme production by the isolates in single and in co-culture on cellulosic agricultural waste for cellulose production
