Trilok Singh, a resident of Chamoli district, was held last evening following a tip-off, police said, adding, he had already delivered the consignment.
During interrogation, Singh told the police that he was involved in the smuggling of 'Yartsa Gambu', a banned aphrodisiac herb which was in high demand in China and other Asian countries.
Police are now trying to trace those who have received the drug consignment.
'Yartsa Gambu' is a herb found in high-altitude areas of Uttarakhand. However, its extraction and trade by common people is banned.