Government has banned the sale and purchase of poppy husk through the contractual system.
The Central Bureau of Narcotics (CBN) has arrested three people and seized nearly four quintals of poppy husk worth around Rs 40 lakh.
"We arrested Ramniwas Nayak and Gopal Rathore, residents of Ujjain district, at Ganjwal bus stand in Indore on August 20 and recovered 198 kg of poppy husk from their car," Indore CBN superintendent Dipak Dubey said.
"After questioning them, we arrested Mangilal Patidar, a resident of Mandsaur district, from the city and recovered nearly 200 kg of poppy husk from his jeep yesterday," he added.
Government has banned the sale and purchase of poppy husk through the contractual system. Mr Patidar had stocked the poppy husk before the ban came into force and he was now selling it at a higher price, the officer said.
The accused were booked under the Narcotic Drugs and Psychotropic Substances Act. Further investigations are on.