In this study, the agricultural waste was used to screen for an organism that is capable of producing enzymes for degrading xylan. Streptomyces sp. are the important source of enzyme involved in lignocellulosic degradation. Streptomyces sp. was isolated from different soil samples. Out of 10 different soil samples, 6 samples gave the best result in starch casein agar plates. Screening was mainly carried out to detect the enzyme and a clear zone surrounding the growth was seen if enzyme xylanase was present. Substrates being cheap and readily available, have recently gained considerable interest because of their possible use in fermentation process. Streptomyces sp., produces xylanase on various feed stuffs like sugarcane molasses, oat spelt xylan, Tomato pomace, Rice bran, wheat bran and saw dust under submerged fermentation condition. The attempts have been made to replace a xylan, costly substrate for xylanase to make xylanase production cost effective. The xylanase activity in each production medium was confirmed by measuring the amount of reducing sugars liberated from the medium by the DNS method using crude extract. The application of the crude enzyme in deinking of newsprint was also studied. © 2015 Academic Journals Inc.