Australian researchers developing a drought-tolerant wheat have had early success in field trials.
The researchers hope to have the world's first transgenic wheat in farmers' hands in five to 10 years.
The researchers have identified two genetically modified lines that generate yield increases of 20%.
German Spangenberg, Executive Director of the Victorian AgriBiosciences Centre, part of a state government research division, said there were very significant grain yield gains.
The test plots were planted in northern Victoria, an area of Australia that suffered significant drought losses in its 2006/2007 wheat crop.
Researchers have asked for regulatory approval to conduct more field trials over the next two years.
The availability of water for agriculture is an important constraint, Mr Spangenberg said. 'To see genetic innovation in a major crop like wheat for drought is very exciting.'
No commercial transgenic wheat currently exists in world markets, due to strong opposition by consumer and environmental groups in many countries.
Several biotech crop developers, notably Monsanto Co and Syngenta, have done extensive work in developing different types of biotech wheat.
However, Monsanto shelved its herbicide-resistant wheat project and Syngenta has slowed the pace of its work on a disease-resistant wheat because of the widespread opposition.
That obstacle could be shrinking, however, as food shortages and accompanying skyrocketing prices for grain have applied a recent shock to the world food system.
Syngenta has its genetically modified spring wheat nearly ready to submit for regulatory approval, but plans to wait for further market acceptance.