German chemicals giant Bayer has suspended its application for legal approval of its genetically-modified rice, "Liberty Link," in Brazil as rice producers in the country worry about its impact on exports.

It has taken a long time - 8 years to be precise. In 2002 Bayer first applied for approval for Brazilian farmers to be allowed to grow their genetically engineered (GE) rice.

The only problem with their plan is that Brazilian rice farmers and producers don’t want GE rice. Bayer has finally gotten the message, and Friday the Ludwigshafen-based company finally withdrew its application.

Bayer is saying publically that they have withdrawn their application “to broaden the dialogue with key members in the production of rice in Brazil”.

Critics say GE crops are becoming less effective in the face of weeds that are resistant to herbicides. In addition, rice producers have lost financially due to GE rice.

It might have been more than just the Brazilian’s rejection of GE rice that made Bayer act. The company is  currently taking a pounding in the US courts, having to pay out tens of millions of dollars to rice producers affected by their contamination of the US rice supply in 2006.

Rice is one of Brazil's biggest exports. The country's 2009-2010 rice harvest is forecast to reach 11.3 million tons.

Currently, Brazil accounts for just 1.8 percent of global rice production. China is the largest contributor, at 29 percent, followed by India at 21.5 percent.

Two-thirds of the rice consumed in the European Union is produced in the continent - Italy and Spain are the biggest producers, followed by Bulgaria, France, Greece, Hungary and Portugal - who together account for 2.5 million tons each year.

The EU mainly imports from Thailand, India and Pakistan.

Greenpeace/Deutsche Welle