Groundnut Farmers in Andhra Pradesh’s Rayalaseema Face Severe संकट

01-Jan-2026 05:41 PM

Anantapur. Groundnut farmers in the Rayalaseema region of Andhra Pradesh, one of South India’s important agricultural areas, are facing a severe crisis due to multiple factors. Persistent drought-like conditions caused by inadequate rainfall, lack of adequate policy support and incentives from the government, and wholesale market prices remaining below the Minimum Support Price (MSP) have turned groundnut cultivation—once considered a reliable and remunerative crop—into a loss-making proposition for farmers.

In recent years, dry and hot weather conditions have led to a sharp decline in average yields and overall groundnut production in Anantapur district. Groundnut prices have also weakened. Large-scale imports of edible oils have pushed down groundnut oil prices, reducing incentives for crushers and processors to purchase groundnuts from farmers at remunerative prices. Facing continuous financial losses, many farmers in the region have begun shifting away from groundnut cultivation toward other crops.

Groundnut acreage in the state stood at about 875,000 hectares in the 2025–26 season but had fallen sharply to just 194,000 hectares by the 2024–25 season. The challenge, however, is that alternative crops are also failing to provide profitable returns to farmers. The region, which once experienced heavy rainfall, is now increasingly marked by rainfall deficits, further aggravating the difficulties faced by farmers.