Excise officials arrested two men from Karnataka at Muthanga on the Kerala-Karnataka border on Sunday night for allegedly smuggling 6,750 kg of ammonium nitrate, a chemical used in explosives.
They seized the chemical and the vehicle used for transportation.
Those arrested have been identified as Isahak, 35, and Hakeem, 25, of Hanthi village in Chikmagalur district in Karnataka.
The seizure took place during a routine inspection at the excise check-post.
The arrested men told the excise officials that they were transporting the explosives to a granite quarry at Kondotty in Kozhikode district, M. Surendran, excise inspector, said.