The invention described is an invert-emulsion formulation of a fungal organism used in the biological control of pests and diseases, exemplified with the formulation obtained with Trichoderma harzianum. This formulation does not contain any petroleum derived products or mineral oil components in its oil phase, it is invert emulsion formulation without phytotoxin effect on crop plants, having viability of more than 106 colony forming units per ml up to 8 months of shelf-life with bioefficacy. The process described and products thereof, provide the better formulation techniques to facilitate the foliar application of bioagents with UV protection. The process claimed in the invention includes the steps Production of fungal spores either by solid state or liquid fermentation. Preparation of conidial suspension or the cell suspension. Preparation of aqueous phase by mixing the conidial suspension, water, emulsifier and glycerol. Preparation of oil phase by adding the vegetable fat mixture to the warm vegetable oil mixture , Mixing of aqueous phase with oil phase to get water in oil or invert-emulsion formulation using homogenizers at 200-2000rpm speed depending upon the volume of material used. The product claimed in the invention can be used for seed treatment, soil application and foliar spray.[IN-CHE-2010-03603A]