The tanker, bearing Kashmir registration number, was on its way to Jammu from Srinagar when police intercepted it near an environmental park in Bagh-e-Bahu area last evening, a police spokesman said.
He said a search of their vehicle led to the recovery of four quintals of Bhukki (poppy straw).
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The two suspected peddlers were booked under relevant sections of the law, the spokesman said.
He said a preliminary inquiry revealed that the duo hailed from Kashmir and was trying to smuggle poppy straw into Jammu from Srinagar.
We are still carrying out investigation into the matter and some more arrests are likely in the case, the spokesman added.