The research study was carried out to determine marketing efficiency of milk products that would help the farmers to choose the most efficient marketing channel for increasing their profitability. The study was conducted by selecting 50 farmers by random sampling method from 8 districts of Punjab state. The marketing of milk products were done through two channels; channel-I (Producer-Consumer) and Channel-II (Producer-Sweetshops/Creameries-Consumers). The marketing efficiency was calculated by Acharya’s method. The marketing efficiency for producing one kg of Ghee, Milk Cake and Paneer were 147.97, 72.14 and 65.56 respectively, in channel-I whereas 38.75, 5.42 and 8.81 respectively, in channel-II. The marketing efficiency was highest for the products marketed through channel-I than channel-II. Hence, channel-I (Producer-Consumer) is the most efficient channel from producer’s point of view.