USDA seeks comment on biotech corn tied to ethanol

WASHINGTON, Nov 24 (Reuters) - The U.S. Agriculture Department has asked for public comment on a request by Syngenta Seeds Inc seeking to deregulate a genetically engineered type of corn that helps in the production of ethanol.

The genetically engineered corn produces a microbial enzyme that facilitates ethanol production. Syngenta Seeds is part of Syngenta AG (SYNN.VX), the world's largest agrochemicals company.

USDA's Animal and Plant Health Inspection Service said after the comment period has ended it would deregulate the genetically engineered crop if it determined the corn does not pose a risk to other plants in the environment.

If it is deregulated, the product could be transported and planted without the requirement of permits or other regulatory oversight by APHIS.

"The scientific evidence indicates that there are unlikely to be any environmental, human health or food safety concerns associated with the GE corn," APHIS said in a statement.

Comments must be submitted on or before Jan. 20, 2009.

U.S. ethanol production is forecast to increase by 1.5 billion gallons to 10.5 billion gallons in 2009, before rising to 15 billion gallons a year by 2015 to meet federal mandates.

About one-third of the 12.02 billion bushel (305.3 million tonnes) U.S. corn crop this year will go toward the production of ethanol, touted as the green alternative to fossil fuels. (Reporting by Christopher Doering; editing by Jim Marshall)