Police said Food and Civil supplies officials on a routine vehicle check near the Kerala-Tamil Nadu border in Pollachi in the district saw a man abandoning his moped and fleeing the spot.
A search of the two wheeler yielded 250 kg of PDS rice loaded onto it, they said.
In another incident in the early hours, a police patrol noticed a van moving in a suspicious manner in the border area and stopped them. Around 800 kg of rice kept in bags were found, they said.
Two persons, identified as Prakash from Kerala and Kannan of Polalchi were handed over to police.