America’s corn processor Archer Daniels Midland (ADM) has sued seed company Syngenta after China refused to import a genetically modified MIR162 corn variety.
The lawsuit reportedly argues that Syngenta commercialised this corn variety without ensuring its acceptability in markets that have not approved it, Reuters reported.
It read: "These rejections have resulted in very substantial losses to U.S. exporters who have had their shipments to China turned away, including tens of millions of dollars in damages to ADM," the news agency said.
However, Syngenta has reportedly said that the lawsuit was without merit.
Meanwhile, grain exporters Cargill and Trans Coastal Supply have also filed a case against Syngenta over the damages linked to China's rejection of shipments.
In addition, more than 100 farmers have submitted a coordinated lawsuit last month with similar demands over the trade disruption.
According to the National Grain & Feed Association, the estimated damage suffered from the drop in corn prices is more than $1bn.
Over the past year, China has rejected shipments of more than 1 million tonnes of U.S. corn and corn products because they contained MIR162 grain, also known as Agrisure Viptera.
