Officials of the Food Safety and Drug Administration Department sealed a godown that has stocked 290 bags of sugar, each weighing 50 kg.
The sugar was meant to be supplied to jaggery manufacturing units in Kamalapuram in Omalur taluk here.
Officials said that spurious jaggery was prepared using sugar, and some banned chemicals instead of sugar cane juice.
Thirty bags of sugar have already been sold. Recently adulterated jaggery was seized from Shevapet.
The godown was raided by a team of officials led by District Designated Food Safety Officer T. Anuradha following a tip-off.
Officials said that despite several warnings, a section of traders were continuing with adulteration.