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Acting on a tip-off, the police team intercepted a truck bearing a Rajasthan number plate on Mhow-Neemuch highway on Monday evening, Daloda police station in-charge Sanjeev Singh Parihar said.
The poppy husk was kept in 130 plastic bags, which concealed under bundles of jute bags in the truck, he said.
The truck driver identified as Motilal Ahir was arrested and a search is underway for four others involved in the illegal trade of the contraband, the official said.
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Poppy straw is the husk left after the opium is extracted from the pods. The straw contains a small quantity of morphine.