The food organisations are pushing to adopt circular economy initiatives to enhance economic–ecological–social sustainability of supply chains. The adoption of circular economy and sustainability aspects is complex from the point of view of developing nations compared to the developed nations. In this sense, the purpose of this paper is to develop a model of the challenges for implementing the successful circular economy-led sustainability concepts in food supply chains in emerging economies, especially in the Indian context.

The authors recognised 11 circular economy-led sustainability-related challenges and analysed appropriate interactions among the identified challenges. The Delphi method was used for the confirmation of identified challenges. The challenges were identified initially with the help of literature. Interpretive structural modelling method was used for modelling the challenges. In addition, MICMAC analysis was used for classifying the challenges based on their dependence and driving power. A case study of diary food processing company in India was conducted.

According to the findings, poor government policies, lack of technology and techniques and lack of farmers’ knowledge and awareness come under the driving challenges.

Understanding of circular economy-led sustainability-related challenges would help managers and policy makers in the sustainable management of natural resources in food value chains.

This is one of the initial works conducted on identifying and evaluating the challenges to circular economy-based sustainability aspects in food value chains.