Feb. 12 (Bloomberg) -- Monsanto Co. and Bayer AG got final government approval in Brazil to start selling genetically modified corn seeds that resist insects and herbicides.

The National Biotechnology Council, made up of 11 ministers, gave final approval for Monsanto's insect-resistant YieldGard Corn Borer and Bayer's herbicide-resistant Liberty Link corn, council spokesman Rafael Godoi said in a telephone interview from Brasilia.

Brazil, the world's biggest corn grower after the U.S. and China, previously only permitted planting of gene-altered soybeans and cotton. Monsanto and Bayer are trying to boost their share of Brazil's growing corn-seed market by offering hybrids that boost yields.

The Agriculture Ministry today raised its forecast for corn output this year to a record 53.6 million metric tons, up from a January estimate of 53.4 million tons. Brazilian farmers harvested 51.4 million tons in the previous crop.

The council of minister today backed decisions last year by the country's National Biosafety Technical Committee, a regulator formed by government officials and scientist.

To contact the reporter on this story: Carlos Caminada in Sao Paulo at at ccaminada1@bloomberg.net

Last Updated: February 12, 2008 16:14 EST