Nineteen strains of lactic acid producing bacteria of the genera Lactobacillus and Streptococcus collected from different culture collections were screened for the production of extracellular phytase. A number of them exhibited the enzyme activity in the fermentation medium but Lactobacillus amylovorus B4552 produced the maximum amounts of phytase ranging from 125 to 146 units ml‐1 extracellularly under the submerged cultivation conditions. The optimum glucose and inorganic phosphate levels for highest phytase production were found to be 1% and 24% mg, respectively. Lactobacillus amylovorus has potential in improving nutritional qualities of cereal and pulse‐based food fermentations.