The waste by-products of the sugar-cane industry, bagasse (b), pressmud (p) and trash (t) have been subjected to bioinoculation followed by vermicomposting to shorten stabilization time and improve product quality. Press-mud alone and in combination with other by-products of sugar processing industries was pre-decomposed for 30 days by inoculation with combination of Pleurotus sajorcaju, Trichoderma viridae, Aspergillus niger and Pseudomonas striatum. This treatment was followed by vermicomposting for 40 days with the native earthworm, Drawida willsi. The combination of both treatments reduced the overall time required for composting to 20 days and accelerated the degradation process of waste by-products of sugar processing industry, thereby producing a nutrient-enriched compost product useful for sustaining high crop yield, minimizing soil depletion and value added disposal of waste materials. (C) 2010 Elsevier Ltd. All rights reserved.