Economic benefit of GM crops limited, says British government
But it added that any economic benefit to Britain is likely to be limited, at least in the short term.
Only a narrow range of existing GM crops are currently suited to British conditions, and weak consumer demand is likely to limit take-up.
The conclusions of the British Prime Minister's Strategy Unit are published in a report, Field Work: Weighing Up The Costs And Benefits Of GM Crops. It looked at crops that are currently available and at possible developments over the next 10 to 15 years.
Looking to the longer term, developments in GM crops have the potential to offer more wide-ranging benefits to farmers and to consumers, it said.
Possibilities include GM crops with agronomic benefits more suited to Britain; GM crops delivering health benefits, eg foods with reduced allergenicity or added nutrients; or non-food GM crops used as a source of pharmaceuticals and vaccines.
The report added, however, that the overall balance of future costs and benefits will depend on public attitudes and on the ability of the regulatory system to manage uncertainties.
British Environment Minister Elliot Morley said the unit had explored the economics of GM crops in a very open and transparent manner.
"I am particularly pleased that they involved experts and stakeholders from all shades of opinion to ensure there was balance and rigour when examining this important issue.
"The report highlights that GM crops are one area in which GM technology has significant potential to contribute to Britain's future economic prosperity and sustainability.
"But it also points out that GM crops are just one possible tool for achieving our goals important advances in crop production will also come from conventional and organic techniques.
"The report sets out a range of potential futures for GM crops in the UK.
"But quite rightly, the report reiterates that consumers and retailers will play an important part in shaping the future role for GM crops."
Peter Melchett, policy director of the Soil Association, said: "We warmly welcome the report.
"This is a huge shift in the Government's position to acknowledging that there is no immediate economic case for growing GM crops and there may be a stronger case for developing organic and non-GM alternatives."