Those arrested have been identified as B Siva Narendra (22), P Mahaboob Basha (23) and P Vinaya Kumar Reddy (20), said Urban Circle Inspector, Rajampeta, Riyaz Ahmed.
"Brown sugar is smuggled to Kuwait and other Gulf countries through innocent persons who goes there on work permit," he said.
The suspected kingpin of the racket, Siva Reddy, is currently based in Kuwait, he said.
