The arrested accused has been identified as Amzad Khan, while his brother Sabir Khan managed to flee from the spot when the raid was launched in the town.
According to reports, Amjad and Sabir had brought the brown sugar from Madhya Pradesh by train on Saturday and stored it in a house at Arad Bazar here.
The two brothers reportedly planned to smuggle brown sugar from Arad Bazar to various districts in Odisha.
Acting on a tip-off, a team of excise officials raided the house in Adarbazar area here and seized the contraband.
While Amjad was arrested, his brother Sabir managed to flee the spot when the raid was launched in the house.
A case under the Narcotic Drugs and Psychotropic Substances (NDPS) Act, 1985 has been registered and a search operation is on to arrest those involved in such an illegal activity, Balasore Excise Superintendent Sushanta Padhi said.
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