Groundnut (Arachis hypogaea L.) is a major oilseed crop of India. Groundnut has great potential for diversification, from oil extraction to food uses, due to its high nutritive value. Aflatoxin contamination is the major impediment to such diversification. Aflatoxins, produced by the fungi Aspergillus flavus and A. parasiticus, are the major toxins affecting the quality of groundnut meant for human consumption. The adoption of ‘Aflatoxin Management Practices of Groundnut’ (AMPG) is very important for reducing aflatoxin contamination. This study was undertaken with the aims of determining the extent of adoption of AMPG by farmers, to assess the constraints upon adoption of AMPG and to understand the relationship between adoption of AMPG by farmers and socio-economic and psychological factors. The results indicated that the majority of the farmers were unaware of aflatoxin contamination and hence had not adopted sowing, post-sowing and post-harvest aflatoxin management practices. The farmers with large land holdings were high adopters of AMPG compared to farmers with small land holdings. Socio-economic and psychological characteristics such as innovativeness, perception of groundnut quality, extension participation, socio-economic status, market orientation and farm size significantly influenced the adoption of AMPG. Mass awareness campaigns need to be organized to improve the stakeholders' perception of groundnut quality and the ill-effects of consuming aflatoxin-contaminated products.