India is the world’s largest milk producer, contributes 187.96 million tonnes (~22 per cent) to the total milk production in the world during 2018-19. The share of Madhya Pradesh in country’s milk production is 15.91 million tonnes (8.46 per cent). The per capita availability of milk in the state is 538 gm/day as against 394 gm/day for India. Inspite of highest availability of milk, the consumption is very low in Madhya Pradesh. The current study estimated the private final consumption expenditure on milk and milk products considering different milk consumer categories in Madhya Pradesh. The present study was carried out by collecting primary data from 140 rural and urban resident households along with 10 non-profit institutions serving households. The study revealed that the state’s private final consumption expenditure on milk and milk products is around 9 per cent of country’s PFCE on milk and milk products at current prices, which coincides with states contribution to country’s milk production during 2019.