Brown sugar worth Rs 2 crore was seized by Manipur Police and Assam Rifles and three persons were arrested from Bishnupur district, police said on Sunday.
During a search operation at Tangjeng near Ibudhou temple in Bishnupur district, the contraband was recovered.
A 34-year-old man recognized as Thangkohsat Guite was arrested security personnel. The brown sugar was hidden in soap cases in a large backpack, they said.
Two other person, 41-year-old Thangsei Guite and 46-year-old Warepam Ramesh Singh were also arrested by the security forces.
A case has been registered and the arrested persons along with the seized items were handed over to Kumbi police station, the police added.