Hi tushma,
.cue files are supported by MPD since 0.17 version. You can manually test it following these instructions:
https://wiki.archlinux.org/index.php/Mu ... #Cue_FilesBut we choose to not display them in the UI, filtering the MPD response during the parsing.
We could change this behaviour in the future, introducing an option to display them.
In the meanwhile, let me suggest you a workaround for your problem. If you are a PC user, there's a wonderful and free tool called which allows you to split the single FLAC file into multiple tracks based on the info contained in the CUE file, and everything is full automated. I use it as I prefer to have a separate file for each track instead of a single file for the whole album.