The dairy industry has played an essential role in the socio-economic development of millions of rural households in India for many decades. India is the world’s largest milk producer therefore dairy farming in India is a supplementary and complementary enterprise to crop farming. Dairy farming in India is a supplementary and complementary enterprise to crop farming which increases income, provide employment, and improves nutritional requirement for the rural as well as urban people and is highly integrated with the crop production sector. But in north-eastern India, the development in the dairy sector is still steady which is reflected in the less production of milk in the region. Therefore, the study evaluates the production, consumption, marketed surplus, and factors determining the marketed surplus of milk in the state of Assam by surveying a random sample of 172 households. The study was conducted in the Lower Brahmaputra Valley Zone Region of the state of Assam. The region comprises eleven districts of Assam. The Kamrup and Barpeta districts were selected on the basis of the high cattle population in the region. The study revealed that average household milk production was 19.86l/day and the marketed surplus was 89.33 per cent of the total milk produced. Furthermore, the variables namely, household milk production (=1.048, p<0.01) and average selling price of milk (=-0.153, p<0.05) were found to have positive statistical significance whereas family size (= 0.145, p<0.001) was found to be having negative statistical significance. The study suggests that there lies huge potential for setting up of dairy cooperative or farmer’s producer organization (FPO) for regulating the dairy sector in the state of Assam.