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Question:
How cells left out in apical Meristem which later form axillary bud? You talk that in SAM stem length keep on increasing but some cells left out giving rise to a axiliary branch but how?
Answer:

As the apical meristem grows and forms leaves, it leaves behind a region of meristmatic cells at the node between the stem and the leaf. These axiallry buds are dormant, inhibited by auxin produced by apical meristem which is known as apical dominance.

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