Chennai: The world demand for bio-tech seeds is expected to increase 12 per cent per year to touch $ 3.8 billion in 2006, according to an international study.

Arable land planted with transgenic crops is expected to increase 7.2 per cent per year to cover 184 million acres over the same period, the study undertaken by the Freedonia Group Inc, a US based research firm, estimates.

According to the study, US, Argentina, Canada and China will dominate the plantings of such crops and will generate the largest demand. These four countries will account for nearly 85 per cent of the total genetically improved seed sales in 2006.

The Freedonia study quoted in the latest "Bio-technology Global Update" said that China fuelled by external investment and government support would see the fastest growth among all agricultural bio-technology markets and will emerge as one of the most diversified producers of such crops.

According to the study, the most significant new product will be nutritionally enhanced, genetically improved rice.

Scheduled for introduction next year, the crop is expected to generate sales of $ 1.3 billion by 2011.

China, India and other Asian pacific countries would account for most of this growth as genetically improved rice assumed a major role in alleviating food shortage in these regions, the study points out.

Genetically improved wheat will also be a notable new product, well set to reaching world markets by 2004 or 2005, the study says adding that initially genetically improved wheat will serve industrial applications due to continued resistance in Europe to bio-technology based food grains.

According to the study, through 2011, soybean will remain the largest genetically improved crop due to its popularity with US, Brazillian and Argentine producers and widespread non-food uses.

Among the major bio-tech crops, however, genetically improved cotton will post the fastest growth over the next 10 years, the study said, adding that cotton is relatively difficult to cultivate and growers are more willing to pay premiums for insect-protected and/or herbicide-tolerant varieties.

PTI