Seven mobile phones and Rs 9,000 in cash were also seized from the person during a raid here yesterday by the Central Excise Intelligence Bureau, Cuttack, an excise department spokesman said.
The accused S K Akbar was arrested during the raid at Arad Bazar under Sahadevkhunta Police Station area in Balasore town.
The 500 gm of brown sugar was valued at Rs 50 lakh in the market, the spokesman said.
Akbar, who lives in Aradbajar locality of the town, was suspected to be supplying the contraband to Cuttack and Khurda.