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Twenty-two suspicious packets were spotted in a crane on the ship anchored at the Paradip International Cargo Terminal (PICT) on Thursday night, they said.
After the crane operator found it, he informed the authorities, suspecting it to be some kind of explosive. After tests, it was confirmed to be cocaine, they added.
The cargo ship, named MV Debi, began its voyage from Egypt and arrived here via the Gresik port in Indonesia. It was scheduled to depart for Denmark with steel plates from here, officials said.
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No one has been arrested so far in connection with the seizures, but the crew members of the ship have been detained, he said.
A Customs team from state capital Bhubaneswar has been rushed to Paradip to assist with the investigation, he said.