A sugar giant with a factory in York has declared there is no market for genetically modified crops - despite a think tank suggesting it is the only viable way forward for the British industry.

British Sugar has discounted claims made in the first detailed study of a single experimental crop, which stated that commercially planting the GM sugar beet would cut costs by 15 per cent.

The crop would need less weed killer, resulting in the savings.

The research said without this saving the industry would no longer be viable, leading to the loss of up to 20,000 jobs in the sector.

But British Sugar said that not only were GM crops currently illegal in the country, they were also considered undesirable by many customers.

A British Sugar spokesman said: "All of our research suggests the consumers do not wish to have food made from genetically modified material. There is just no market for this.

Updated: 10:37 Monday, February 17, 2003