China, the world's top rice producer and consumer, has again put off a plan to allow farmers to grow transgenic rice even as it raises its biotechnology budget for the next five years.

The move follows concerns in Europe and other countries when unsanctioned GMO rice was found in a US shipment to Europe in August, prompting Europe to introduce tough new testing of the grain from the United States.

Chinese scientists and industry officials said the dispute, which is costing US farmers millions of dollars, has highlighted the importance of a robust regulatory system that measures and assesses food safety in every country.