Biofertilizer 'UPM BioGreen' consists of locally isolated nitrogen fixing, phosphate solubilizing bacterial strains and Glomus mosseae mycorrhiza. Microbes were grown in 2.5 % molasses and mixed into compost mix consists of commercial peat (Peat grow) and empty fruit bunches (EFB) compost. Application of one tone per hectare of this product is able to increase plant biomass, photosynthesis and crop yield with 30% less chemical nitrogen and phosphorus fertilizer. Nitrogen fixing bacteria of this product supply nitrogen for crop requirement. Phosphate solubilizing bacteria and mycorrhiza enhance P solubilization from phosphate rock that improves plant P acquisition and plant growth with reduced P fertilizer. Instead of expensive triple super phosphate (TSP) a cheaper phosphate rock (PR) can be utilized for annual crop production. Phytohormones produced by the microbes construct extensive plant root architecture that increased nutrient uptake from surrounding soil. This product is environmental friendly and suitable for sustainable crop production. UPM BioGreen can be easily applied by farmers by mixing it with organic fertilizer and can be used for crop production especially rice and vegetables. Industries related to organic and biofertilizer production are able to produce this product by using locally available organic materials and industrial byproducts such as molasses. The cost for manufacturing of this product should be less than that of chemical fertilizer.