  A generic feature of the known string inflationary models is that the same
physics that makes the inflaton lighter than the Hubble scale during inflation
often also makes other scalars this light. These scalars can acquire
isocurvature fluctuations during inflation, and given that their VEVs determine
the mass spectrum and the coupling constants of the effective low-energy field
theory, these fluctuations give rise to couplings and masses that are modulated
from one Hubble patch to another. These seem just what is required to obtain
primordial adiabatic fluctuations through conversion into density perturbations
through the `modulation mechanism', wherein reheating takes place with
different efficiency in different regions of our Universe. Fluctuations
generated in this way can generically produce non-gaussianity larger than
obtained in single-field slow-roll inflation; potentially observable in the
near future. We provide here the first explicit example of the modulation
mechanism at work in string cosmology, within the framework of LARGE Volume
Type-IIB string flux compactifications. The inflationary dynamics involves two
light Kaehler moduli: a fibre divisor plays the role of the inflaton whose
decay rate to visible sector degrees of freedom is modulated by the primordial
fluctuations of a blow-up mode (which is made light by the use of
poly-instanton corrections). We find the challenges of embedding the mechanism
into a concrete UV completion constrains the properties of the non-gaussianity
that is found, since for generic values of the underlying parameters, the model
predicts a local bi-spectrum with fNL of order `a few'. However, a moderate
tuning of the parameters gives also rise to explicit examples with fNL O(20)
potentially observable by the Planck satellite.
