Likely to be in place within eight to nine months, the policy would also promote foreign and private sector investment in the biotechnology sector.

"We intend to have a biotech policy as quickly as possible to supply to the farmers pest-resistant and drought-resistant seeds with high nutritional values," the minister said.

The debate on biotech grains has intensified worldwide, with advocates saying they could lead to a more secure future for food, while opponents say they could produce new toxins and allergens, affecting the health of consumers.

India opened the door to genetically modified organism (GMO) technology in 2002 after years of trials and allowed Maharashtra Hybrid Seeds Co. (MAHYCO), in which US biotech giant Monsanto Co. owns a 26 per cent stake, to sell transgenic cotton.

It may take many years for the approval of a second GMO crop. Sibal said at least seven GMO crops, including rice, potatoes and mustard, were being field-tested in India.

Sibal said the Government planned to restructure the Genetic Engineering Approval Committee, which has representatives from the ministries of science and technology, environment and health.

The Government was equally keen to have bio-safety standards in place, and would only welcome private companies if such standards were complied with, the minister said.

"Biotechnology and bio-safety must go hand in hand," he informed.