AWB is closing the price gap between genetically modified and non-GM canola in a bid to shore up supply for Asian markets.
In Victoria and NSW, GM canola is trading at $30-$40 a tonne less than conventional canola.
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But anti-GM groups say the AWB offer and price deals on GM seed are a sign of lack of interest from farmers and customers.
AWB's Roundup Ready canola max spread contract offers GM growers a guaranteed price so the difference between GM and non-GM is no more than $10 a tonne. Growers must sign up before June 29 this year, but can lock in a price later.
Cargill Australia corporate affairs director Peter McBride said the offer was partly to ensure an ongoing supply of GM canola in the coming seasons to sell into the Asian markets.
"In that respect, yes, it is an incentive to grow the canola to service those Asian markets," Mr McBride said.
"Farmers have told us they will grow GM canola if the price spread was less."
He said, based on Monday's prices, non-GM delivered to the Newcastle port was $557 a tonne so GM would be $547 a tonne.
Mr McBride said the offer was only for the Grainflow site at Gilgandra, north of Dubbo, and the Newcastle port zone, but may be expanded over time to meet demand.
He said GM canola attracted a discount because it was not accepted in Europe and Australian GM canola was facing competition on the world market from Canadian GM canola.
Monsanto licensee Canola Breeders WA is also offering a four-for-the-price-of-three deal on Roundup Ready Eclipse canola seed in Western Australia.
Gene Ethics spokesman Bob Phelps said Monsanto was under such pressure to sell seed it was prepared to discount it and wear the cost. Monsanto spokeswoman Keryn McLean said Monsanto did not sell seed.
