Tobacco ranks among the most economically viable and commercially valuable agricultural crops throughout the world. Not only is tobacco a drought-resistant, hardy plant that can be grown on land unsuitable for other profitable crops, but it creates direct or indirect jobs for 38 million people. Tobacco also represents a large portion of India’s commercial crop exportation. Approximately 85% of the total amount of tobacco that India exports is FCV-type (flue-cured Virginia); additionally, the state of Andhra Pradesh (AP) produces about 99% of the total amount of FCV tobacco produced in India. The purpose of this research paper will be to provide an overview of the cost and return per acre, along with the input/output ratio between various sizes of farms and how to determine the disposal pattern and marketable surplus for each type of estate operating in the tobacco sector.