A study was carried out to estimate the cost and return, marketed surplus and income equality of milk in different type of dairy farms in Cuttack district of Odisha. The primary data were collected randomly from 120 numbers of milk producers. The percentage share of small, medium and large farmers was 34, 54 and 12 respectively. Net return was higher in case of organized of Rs. 167.669 as compared to unorganized of Rs. 144.959 per day per cow. The average production, consumption and marketed surplus per day per household were 49.45, 4.96 and 44.49 litres in organised and 46.97, 5.21 and 41.76 litres in unorganized sector which indicated that both production and marketed surplus was higher in organized sector as compared to unorganized sector. All the farm sizes preferred to sell their produce to cooperative. In unorganized sector, all the farm sizes preferred to sell their produce to village trader followed by direct selling. Income of organized sector was more equally distributed than the unorganized one. Hence, it was suggested as dairy business was fine but till not reached the target, care should be taken for more and more yield by government incentive.
