Biotechnology is the application of scientific and engineering principles to the processing of materials by biological agents. It is based on enhanced understanding of the genetic structure of organisms at the level of cells and molecules and offers powerful tools to modify them for a specific purpose. The versatility of the technique and its possible profitable use in such diverse fields like agriculture, pharmaceutical, mining, environment, food processing etc. have attracted of investment for research mostly from private sector. Biotechnology promises to revolutionize agriculture both in terms of quantity as well as quality of the crop output. It is possible to produce hardier plants to grow in desert, alkaline and other extreme soil conditions. Growing seasons can be reduced making it possible to have multiple harvests. Strains resistant to pests, diseases, heat, frost, drought and flooding can be developed. It also promises to improve the nutritional value and taste of products. Dependence of chemical fertilizers and pesticides can be reduced or removed. It may be possible not only to eradicate hunger but also malnutrition through the application of biotechnology. However, the risk to the environment due to the engineered organism, neglect of certain crops in research due to the involvement of and influence of private sector, displacement of foreign exchange earning crops from developing countries, socio-economic impact resulting from the adoption of the technology, the dominance of technologically rich but genetically poor industrialised countries over genetically rich technologically poor developing countries through the Intellectual Property Rights mechanism etc are some of the major areas of concern. The right priorities in applying the technology, strengthening the national agricultural research systems, increased south cooperation in sharing genetic material and the resultant product etc may help to overcome some of the concerns.