Waste generation continues to increase with population growth and intensified farming activities. The improper disposal of agricultural residues through open burning, dumping, or landfilling leads to greenhouse gas emissions, and environmental degradation. Agri-residues, including husks, straws, peels, and processing by-products, hold substantial potential for value-added utilisation. Given their high organic content, they serve as excellent substrates for microbial biotransformation, a process that converts waste into value-added bio-based products such as biopolymers, bioenergy, biofertilizers and so on. Microbial enzymes play a vital role in facilitating efficient bioconversion and improving product yield. This review article provides an overview of recent advancements in microbial biotransformation of agricultural waste, emphasizing the underlying mechanisms and potential applications. Bacillus sp., Trichoderma sp., Lactobacillus sp., Aspergillus sp., Saccharomyces cerevisiae are widely used and extensively researched species due to their high fermentation efficiency, substrate adaptability, and well-established industrial use. Microbial enzymes such as cellulase, laccase, amylase, xylanase, ligninase proved efficiency and feasibility in valorisation in multiple studies. By transforming residues into high-value products, this approach contributes significantly to advancing a circular and resource-efficient bioeconomy, promoting environmental sustainability alongside economic development. The discussion also encompasses both the prevailing challenges and the prospective advancements of this sustainable strategy.
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