Acting on a tip-off, police raided a field in Gadela Kothapalli village in Obulavari Palli mandal and found a lorry in which 20-30 labourers were loading red sanders logs, Rajampeta Deputy Superintendent of Police G V Ramana said.
When the labourers were asked to stop loading the red sanders and surrender, they pelted policemen with stones.
Later, police fired two rounds in air after which the labourers fled from the spot.
No one has been arrested so far in this connection, he said.
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During further search, police found a dump of food grains, including 30 bags of rice, near the field where the red sanders were being loaded.
Police suspect that nearly 200 labourers were camping in that area apparently for red-sanders smuggling.
Combing operation is on to nab the smugglers, he said adding that vigilance has been intensified at railway stations and bus routes.