March 3 (Bloomberg) -- Brazil's lower house gave final congressional approval to a bill allowing farmers to plant genetically modified crops, benefiting companies such as Monsanto Co., the world's biggest developer of gene-modified crops,

The bill, which now goes to Brazilian President Luiz Inacio Lula da Silva's for his signature, passed by a 352-60 vote late yesterday. The law authorizes the creation of the National Technical Bio-safety Council to monitor gene-altered agriculture in the country as well as supervise research involving human stem cells in a bid to find cures for degenerative diseases.

Passage of the law may boost the use by domestic farmers of Monsanto's Roundup Ready genetically modified soybean seeds in the country's soybean crop to 90 percent from 20 percent currently, Kevin McCarthy, an analyst with Banc of America Securities, said in a research note sent to clients today.

The bill ``will likely open the door for legal sale of Monsanto's Roundup Ready soybeans to growers in Brazil,'' McCarthy said in the note. ``Full legalization could facilitate market penetration of RR beans.''

Farmers in Brazil have been illicitly planting Monsanto's Roundup Ready soybean seeds, smuggled from Argentina, for several years, because they produce more beans and cut costs by requiring less pesticides and herbicides.

Monsanto shares fell 18 cents, or 0.2 percent, to $58.34 on the New York Stock Exchange at 12:25 p.m. New York time.

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

Last Updated: March 3, 2005 12:31 EST