Earlier, industries used to procure eucalyptus wood pulp from farmers through their agents, who in turn got it from the farmers who were often exploited.
"Also, there was no uniformity in prices offered by the industries to farmers," Koraput collector and chairman of price fixation committee Sachin Jadhav said.
"Now the industries will have to directly purchase wood pulp from the farmers at the MPP and make payment through bank accounts. This will ensure maximum profit to the farmers," he said.
"The industries will bear the cost of harvesting, loading and transportation which was earlier borne by farmers," said divisional forest officer (Koraput) Bijaya Kumar Panda.
Last year, the two paper mills had purchased debarked wood pulp at Rs 2,800 and Rs 2,550 a tonne respectively from farmers of the district. Eucalyptus trees are grown in large numbers in the district, especially at Lamataput block.
Officials said by growing eucalyptus in an acre a farmer can earn around Rs 1 lakh profit, excluding investment of around Rs 75,000 from first to fourth year, if the produce is sold at the MPP.