This study analyzes the environmental, economic, and behavioural dimensions of cotton-based paper adoption in Maharashtra through a multi-stakeholder analysis (n=550) involving consumers, D2C retailers, distributors, and transporters. Integrating quantitative and qualitative methods within a Circular Economy (CE) framework, the research evaluates perceptions and challenges influencing the shift from wood-based to cotton-based paper. Results show that eco-label trust and environmental awareness are the most consistent positive predictors of adoption. Consumers and D2C retailers demonstrate high adoption willingness, supported by ethical branding. Distributors show conditional optimism, constrained by cost barriers, inconsistent supply, and limited policy communication, while transporters cite a need for specialized green logistics infrastructure. Reliability tests (Cronbach's alpha: 0.74 – 0.84) confirm the validity of attitudinal constructs. Through the lens of the Theory of Planned Behaviour (TPB) and Diffusion of Innovation (DOI), the study reveals that cotton paper is in the early diffusion phase socially desirable yet structurally under-supported. Policy synthesis calls for eco-certification schemes, fiscal incentives, institutional procurement mandates, and circular industrial clusters to accelerate India's transition toward Responsible Consumption (SDG 12) and Climate Action (SDG 13), confirming cotton paper as a viable, ESG-aligned alternative. Keywords: Cotton-based Paper, Circular Economy, Diffusion of Innovation, Theory of Planned Behaviour, Sustainable Supply Chain, Eco-labelling, D2C Retail, Policy Incentives, Green Logistics, ESG, SDGs.