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Cytodifferentiation
Since the undifferentiated callus cells are all parenchymatous in nature, the differentiation of these cells into a variety of cells is required during redifferentiation of these cells into whole plants. In this connection the study of differentiation into vascular tissue has received maximum attention.

It has been shown that auxin and sucrose playa major role in vascular differentiation and also that cytokinins and gibberellins promote differentiation into xylem tissue. At low concentration (0.5mg.l-l), auxin stimulates xylem formation and there is inverse relationship between auxin concentration and the degree of xylem differentiation.

This effect of auxin is dependent on the presence of sugar, since the relative amounts of xylem and phloem formed can be altered by varying the sucrose concentration.

In some studies (e.g. in Syringa), 1% sucrose (with 0.55mg l-l of auxin or lAA) induced little xylem formation; 2% sucrose favoured better xylem formation (with little phloem), 2.5-3% sucrose induced equal xylem and phloem differentiation and 4% sucrose induced only xylem formation (with little or no phloem).

Sugars, other than sucrose (e.g. maltose, glucose, fructose, etc.) have also been used to stimulate vascular differentiation. Besides auxin and sucrose cytokinins and gibberellins have also been shown to playa role in xylem differentiation.