A special squad of the Excise Intelligence and the Enforcement Bureau seized brown sugar worth Rs 5.5 lakh from a person at Khandagiri Square here on Wednesday.
The Excise officials arrested one Muna Sethi on the charge of peddling the drug.
According to reports, the Excise sleuths, acting on a tipoff, conducted raids and recovered the brown sugar weighing about 35 grams from Sethi.
Further investigations were on to ascertain whether Sethi operated alone or whether he was part of a bigger racket, said an Excise Department official.
Though the Excise Department and the police made the seizure of brown sugar, it was said to be a tip of the iceberg. Drugs continue to be smuggled by peddlers from Baleswar and other places. The Haldipadia slum under the Laxmisagar police station is a safe haven for drug smuggling.