The truck was ferrying the items from the Pakistan occupied Kashmir (PoK) side, police said.
"The drugs were hidden in fake cavities specifically fabricated for this purpose in boxes purportedly to contain mercantile goods truck driver identified as Syed Yousuf son of Ali Akbar has been taken into custody," a police statement released on Saturday morning read.
The truck was stopped near Uri in Baramulla, where a deadly attack on Indian soldiers took place last year.
At least 17 soldiers lost their lives and another 20 were injured in the aforementioned incident.
Images: twitter.com/JmuKmrPolice