Above all, the production of inorganicfertilizers is energy intensive, depending upon fossil fuel and hence becoming costly day byday. To cope with the above situation, Indian agricultural scientists are constantly stressingupon the use of bio-fertilizers. During 2001-2002, the production and distribution of bio-fertilizers in the country was roughly 10,000 metric tones, where the production of Rhizobium, Azotobactor, Azospirillum, Acetobactor and PSB were 1603, 1553, 1258, 166and 4088 metric tones, respectively.
Among the other bio-fertilizers, compost acceleratorslike cellulose/ lignin decomposers have got considerable importance. A biofertilizer (also bio-fertilizer) is a substance which contains living microorganisms which, when applied to seed, plant surfaces, or soil, colonizes the rhizosphere or the interior of the plant and promotes growth by increasing the supply or availability of primary nutrients to the host plant.  Bio-fertilizers add nutrients through the natural processes of nitrogen fixation, solubilizing phosphorus, and stimulating plant growth through the synthesis of growth-promoting substances.
Bio-fertilizers can be expected to reduce the use of chemical fertilizers and pesticides. The microorganisms in bio-fertilizers restore the soil’s natural nutrient cycle and build soil organic matter. Through the use of bio-fertilizers, healthy plants can be grown, while enhancing the sustainability and the health of the soil. Since they play several roles, a preferred scientific term for such beneficial bacteria is “plant-growth promoting rhizobacteria” (PGPR).
Therefore, they are extremely advantageous in enriching soil fertility and fulfilling plant nutrient requirements by supplying the organic nutrients through microorganism and their byproducts. Hence, bio-fertilizers do not contain any chemicals which are harmful to the living soil. Bio-fertilizers eco friendly organic agro-input and more cost-effective than chemical fertilizers. Bio-fertilizers such as Rhizobium, Azotobacter, Azospirillum and blue green algae (BGA) have been in use a long time. Rhizobiuminoculant is used for leguminous crops.
Azotobacter can be used with crops like wheat, maize, mustard, cotton, potato and other vegetable crops. Azospirillum inoculations are recommended mainly for sorghum, millets, maize, sugarcane and wheat. Blue green algae belonging to a general cyanobacteria genus, Nostoc or Anabaena or Tolypothrix or Aulosira, fix atmospheric nitrogen and are used as inoculations for paddy crop grown both under upland and low-land conditions. Anabaena in association with water fern Azolla contributes nitrogen up to 60 kg/ha/season and also enriches soils with organic matter. 2]
Other types of bacteria, so-called phosphate-solubilizing bacteria, such as Pantoea agglomerans strain P5 or Pseudomonas putida strain P13, are able to solubilize the insoluble phosphate from organic and inorganic phosphate sources.  In fact, due to immobilization of phosphate by mineral ions such as Fe, Al and Ca or organic acids, the rate of available phosphate (Pi) in soil is well below plant needs. In addition, chemical Pi fertilizers are also immobilized in the soil, immediately, so that less than 20 percent of added fertilizer is absorbed by plants.
Therefore, reduction in Pi resources, on one hand, and environmental pollutions resulting from both production and applications of chemical Pi fertilizer, on the other hand, have already demanded the use of new generation of phosphate fertilizers globally known as phosphate-solubilizing bacteria or phosphate bio-fertilizers.  Benefits A bio-fertilizer provides the following benefits: Since a bio-fertilizer is technically living, it can symbiotically associate with plant roots. Involved microorganisms could readily and safely convert complex organic material in simple compounds, so that plants are easily taken up.
Microorganism function is in long duration, causing improvement of the soil fertility. It maintains the natural habitat of the soil. It increases crop yield by 20-30%, replaces chemical nitrogen and phosphorus by 25%, and stimulates plant growth. It can also provide protection against drought and some soil-borne diseases. Bio-fertilizers are cost-effective relative to chemical fertilizers. They have lower manufacturing costs, especially regarding nitrogen and phosphorus use. Some important groups of Bio-fertilizers Azolla-Anabena symbiosis: Azolla is a small, eukaryotic, aquatic fern having global distribution.
Prokaryotic blue green algae Anabena azolla resides in its leaves as a symbiont. Azolla is an alternative nitrogen source. This association has gained wide interest because of its potential use as an alternative to chemical fertilizers. Rhizobium: Symbiotic nitrogen fixation by Rhizobium with legumes contribute substantially to total nitrogen fixation. Rhizobium inoculation is a well-known agronomic practice to ensure adequate nitrogen. Benefits of Bio-fertilizers: 1. Enrich soil with nitrogen by biological nitrogen fixation. 2. Increase crop yield by 15-20 %. .
Increase germination potential of seeds. 4. Develops resistance against disease in crops, suppress soil borne diseases as some of the inoculants produce antibiotics. 5. Improves soil properties and sustain soil fertility. 6. Help in mineralization of plant nutrients, solublize unavailable phosphate and sulfur in thesoil converting them in available form. 7. Bio-fertilizers release certain hormones, which increase crop growth. 8. Save fertilizer consumption by nearly 15%. 9. Bio-fertilizers are cheap, handy, eco-friendly, pollution free and easy to transport.