The paper has analyzed the performance of agriculture in terms of growth and instability of yield, area and production of major crops in Odisha. The growth analysis has shown a gloomy picture in the postreform era, as instability has augmented during this period, rendering the agricultural sector of Odisha as unsustainable. The various causes of low growth rate have been identified. The study has discarded the hypothesis of direct relation between high growth and high instability. Weather variability and price risk as prime source of instability have been analyzed and the study has shown that mainly weather variability plays a pivotal role than price fluctuations in augmenting risk. The paper has suggested some policy implications to augment agricultural production in Odisha.