Two persons were arrested and 94 kg of ganja was seized from them by the district Police at the Dondapudi Forest Check Post, under the Makavarapalem Police Station limits on Thursday.
The police also seized a car and two mobile phones from them.
The third accused, said to be a ganja trader from the Agency, managed to escape.
The accused were identified as Ella Appanna and Ommi Trinadha Rao, both residents of Anakapalle and Prasad, the ganja trader, who hails from Chintapalli.