Effective diseases control is crucial to the optimal contribution of livestock to the national economy. One of the most contagious and the most devastating diseases of farm animals is foot and mouth disease virus (FMDV) infections. The direct economic losses are mainly due to loss in milk production and reduction in the working ability of draught animals. The indirect losses are due to the non-acceptance of milk and milk products, meat and hide by FMDV-free countries. Control of FMDV is mainly through prophylactic immunization of susceptible animals populations. This pilot study was conducted mainly with the objectives of (i) estimating the costs and losses associated with FMDV infections; and (ii) characterizing and quantifying the costs and benefits associated with FMD-Control Programme (FMD-CP) in two groups of FMD-CP and FMD non-CP districts in Andhra Pradesh during 2009-2010. Results revealed that FMDV outbreaks persisted longer period in the areas where there is no vaccination programme. Despite the FMD-CP, farmers reported that outbreaks persisted. In addition, the morbidity was higher than mortality and they were both higher in areas without vaccination coverage. The total economic losses was estimated to be, Rs. 41,482 and Rs. 63,768 due to FMDV in CP and non-CP districts, respectively. The CP in the state of Andhra Pradesh reduced the cost to Rs. 22,286 per farm during the outbreak. The causes of economic losses were arranged in this study as the following: the value of milk lost, draught power lost, treatment cost and the mortality percent in livestock. Factors such as education, the experience in dairy farming, and the total income positively influenced the urge of farmers for vaccination of their animals against FMDV. Livestock of lower caste farmers, especially milch animals of Other Backward Class (OBC) and Scheduled Tribe (ST), were not involved completely by the vaccination programme, due to the notion that ‘milk production might fall’. The total economic loss estimated to be Rs.1147.31 crores per year in the state of Andhra Pradesh due to FMDV outbreaks. The ultimate stamping out of the disease from India necessities expansion of FMD-CP to whole of the state, ring vaccination, incentive system for susceptible animals population, quick response of the veterinary authority during outbreaks, and regulation of animals movement across regions.