In the last decade, Xylanases have extended their use from the paper and pulp industries to newer needs such as biofuel production. The enzyme xylanase was produced by utilizing cheaper substrates like grass extract and sugarcane sheath leaf extract supplanted with nutrient sources in Submerged Fermentation using a mixed culture of Bacillus polymyxa and Cellulomonas uda. A fermentation time of 6 days was required to obtain maximum xylanase activity.High activities of enzyme (14.662 IU/ml) were obtained with sugarcane sheath leaf extract as the major carbon source. The optimum pH and temperature for maximum production of xylanase were found to be 8 and 50°C respectively. Additionally the effect of various inducers were also studied and it was found that xylan(0.2%) could induce xylanase production resulting in an enzyme activity of 44.773 IU/ml.