RESPONSE OF VAM FUNGI ON SOIL MYCOFLORA AND BIOMASS OFAZADIRACHTA INDICA ARUN ARYA Botany Department, Faculty of Science, The M.S.University of Baroda, Vadodara 390002 (Gujarat), India. Background and Objectives Azadirachta indica, popularly called as margosa (Limdo in Guiarati and Neem in Hindi) is a multipurpose tree. increasing demands of herballbiopesticides make it commercially very important. It is a common observation that although a large number of seeds germinate oniy few survive. in others the growth is very poor for first few years. Role of VAM fungi is not well understood in this case. Work has been done on otant like Leucaena: Tamarindus, Casuarina and Citrus etc. [1]. A detailed study was undertaken to record alteration in soil mycoflora bv introduction of VAM fungi. Changes in root and shoot biomass were aiso recorded. Results and Conciusion Monthly observations revealed that 2 and 3 months old seedlings harboured maxmum number of fungi, Totally 30 different spp. belonging to 16 genera were recorded. Fungi like spp. of Aspergillus and Trichoderma were recorded frequently. After 3 months tne number of colonies of Aspergillus per 100g soil reduced. While a slight increase in population of fungi like Monil and Rhizopus sp, was observed. VAM fungi were grown on Cenchrous ciliarls and then this soil with VAM spores was mixed soil supporting neem seedlings. Giomus fasciculatum Gerd. & Trappe gave most promising results. A significant change in root and shoot biomass was recorded. Reference 1 . Bagyaral D J 1997 Biotechnological approaches in soil microorganisms for sustainable crop production pp 309-319.