•An overview of the farmer producer organisation (FPO) formation is explained.•Product, process and technological innovative practices are identified.•SCOR model is used to analyse the different supply chain levels of FPO.•Economic, environmental and social outcome of innovative practices are discussed.•Integrated framework of collaboration, innovation and sustainability is proposed. Firms today are striving to adopt innovations to ensure their survival, value creation and success. Innovation is increasingly seen as an outcome of a collaborative process, involving various stakeholders both within and outside the firms, in supply chain relationships. Collaborative arrangements are gaining traction and the focus of innovation is shifting from firms to their supply chain networks. This leads to the notion of supply chain innovation, which has been widely accepted as an important ingredient for improving the organisational and supply chain performance of firms. Inefficient practices such as improper crop selection, involvement of too many intermediaries, flood irrigation, over-fertilization and food waste necessitate innovative practices that will improve the sustainability of the food supply chain. In this regard, there is a need to investigate how collaboration among food supply chain entities leads to innovative practices and how these innovative practices in turn improve the sustainability of the food supply chain. This study aims to address this gap using the case of the Indian Farmer Producer Organisations (FPOs). Further, using the Supply Chain Operations Reference (SCOR) model, the supply chain of FPO is divided into five levels - plan, source, make, deliver and return and the case is analysed across these levels. The findings show that the formation of FPO through collaboration facilitates many innovative practices that result in several economic, environmental and social benefits to the FPO.