The present technology provides a method for soil-less production of AM fungal inoculum by utilizing sterile Arka Fermented Cocopeat as the sole substrate for host plant growth with the intervention of beneficial bacteria (applied at the rate of 0.5 kg per 1000 kg Arka Fermented Cocopeat substrate). This helps in enhancing the host plant root growth, AM fungal colonization and proliferation within the host plant roots, and to derive an inoculum free of any cross contamination. The entire process can be carried out in a time span of 60 days under ambient conditions either under shade or glass house. A count of 0.28 – 0.35 x105 Infective propagules / gram of substrate was obtained using this method. The shelf life is upto one year.