Police inspector K M S V Prasad identified those arrested as Nageswara Rao and Konda Babu of Narsipatnam area as well as Sattibabu of G Madugula area in the district.
He said that, acting on tip-off, a truck was intercepted and the contraband, which was packed in gunny bags was seized.
Smugglers procured ganja from parts of Chintapalle and were transporting it to Hyderabad, he said. The kingpin behind the racket is a native of Hyderabad, while two more people are involved in the illegal trade, he said.