Thursday August 9, 12:01 pm Eastern Time

Brazil backs off approving GM soybeans--papers

SAO PAULO, Aug 9 (Reuters) - Brazil's Agriculture Ministry reversed its 
previous position that it would soon approve Monsanto (NYSE:MON - news) brand 
genetically modified soybeans for sale in Brazil, local newspapers reported on 
Thursday.

Agriculture Minister Pratini de Moraes abandoned the idea that the ministry was 
likely approve the marketing of Roundup Ready GM soybeans by Monsanto this week 
or in the immediate future, as had been the ministry's stance over the last few 
weeks, reported the financial daily Gazeta Mercantil.

According to the paper, Pratini at a meeting of the National Agriculture 
Confederation late Wednesday said: ``As there are judgments still pending, we shall 
only issue registration (for Monsanto soy) when these judgments have been 
resolved.''

Ministry spokesmen declined to comment further.

Over the last month Pratini and ministry officials said Brazil's long-standing ban on 
GM crop sales would soon be lifted, allowing a handful of Monsanto's Roundup Ready 
soybean varieties, which have been bio-engineered to withstand the Roundup Ready 
herbicide, onto the market.

In Brazil, the world's No. 2 soy grower and exporter after the United 
States, environmentalists Greenpeace and local consumer protection groups 
have been effective in stopping the entrance of GM crops and foods onto the 
market with court injunctions.

Monsanto Roundup Ready soybeans are the farthest along the bureaucratic trail 
toward approval for sale, but the company is still completing a five-year 
environmental impact study in Brazil, ordered by the court in 1998.

Although GM soybeans are officially banned in Brazil, an increasing percentage 
of farmers are turning to a thriving black market in illegal GM seeds like 
Monsanto's which promise to reduce their operational costs in applying herbicide, 
according to the Brazilian Seed Producers' Association.