The biotechnology industry was told yesterday it must bear the cost of compensating UK farmers who suffer losses after contamination by the spread of genetically modified seeds.

Margaret Beckett, Britain's environment secretary, made her long-expected announcement approving the planting of GM maize - the first transgenic crop to be permitted in the UK - but insisted neither the British taxpayer nor non-GM farmers should be expected to pick up the bill for commercial damage to farmers who lose their "non-GM" status.