The two accused have been identified as Bodde Venkataramana alias Pedda Venkataramana (38) of Bhakarapeta village in Kadapa district and Thammineni Babu (37) of Chintapalli village in Nellore district.
"Based on a tip-off, the duo, who have links with the inter-state and international red sanders smugglers, were caught at Sivaji Nagar cross road in Obulavaripalli mandal in Kadapa district today," Superintendent of Police (Kadapa) Dr Naveen Gulati told reporters.
126 logs of the precious wood weighing 3,102 kg and worth Rs six crore in the international market were recovered from them, police said.
"Bodde has been involved in red sanders smuggling for the past six years and illegal businesses in Andhra Pradesh, Karnataka, Tamil Nadu, Delhi, Uttar Pradesh and some other northern states," Gulati said.
Further investigation is on.