The truck was seized yesterday on specific information from the godown of the trader in Baramulla town, 55 kms from here, they said.
Over 100 bags of sugar were recovered from the truck which was being unloaded at the godown, police said.
The trader identified as Khurshid Ahmad Zarfar of Kanlibagh locality of the town has been arrested and his godown sealed by the district magistrate, they said, adding, the truck driver fled away.
A case has been registered and investigations started, police said.
Police claimed to have foiled on May 24 an attempt by some government officials to embezzle FCI food grains with the recovery of 300 bags of wheat from a truck in Kunzar area of Baramulla district.
