The accused were identified as Paramjit Singh alias Pammi and Amrik Singh, Phagwara DSP Kamalpreet Singh Chahal said.
He said while one kg opium was seized from Pammi, the 10 kg poppy husk was recovered from Amrik.
The opium was worth Rs 1.5 lakh, he said.
However, poppy husk was sold at unspecified cheaper rates, he said.
Pammi, a notorious peddler, used to smuggle opium from Jharkhand at a cheaper rate and sell it in Punjab at higher price, said DSP.
They were arrested under relevant sections of the Narcotic Drugs and Psychotropic Substances Act, he said.