The New South Wales Farmers' Association is disappointed with a State Government decision to extend the current ban on growing genetically modified (GM) food crops for another two years, and says industry should have been consulted.

Chair of the Association's Grains Committee, Angus Mclaren says the Association is pushing to resolve issues preventing the commercial release of genetically modified canola, and extending the current moratorium will only serve to stall the issue.

"We are extremely concerned about the lack of consultation with this decision and believe there needs to be stronger direction and more industry involvement on this issue," Mr Mclaren said.

"The Association supports trials, and believes they are necessary to address grower concerns such as how well GM canola grows, trade issues, segregation, marketing and insurance.

"The current moratorium only discourages trials, both small scale and paddock sized. How can industry make any progress and conduct the necessary research, if the Government keeps putting up these barriers?"

Legislation to extend the Gene Technology Act 2003 will go before the State Parliament later this year.

"While the Government have already agreed to extend the current moratorium until 2008, this legislation will set out specifically what can and cannot be carried out under the moratorium and the Association will use this opportunity to push for large scale trials.

"We acknowledge that since the moratorium was first put in place, there has been a general acceptance of GM foods in overseas markets and unless we start to address this issue seriously, Australian grain growers will be left behind the eight ball.

"Many farmers across the state are undecided about commercially adopting GM crops. However, there is a strong feeling amongst growers that further information is needed to test the claims of both sides of the debate and the Association will continue to push for appropriate research.

"The Association will be holding a forum in Sydney next week to encourage both sides of the debate to put their views forward," Mr Mclaren concluded.