- "Moon sugar is a grainy powder of small white crystals refined from cane grasses of Elsweyr, it has modest magical properties, and is also a potent narcotic, and illegal in Morrowind and the rest of the Empire. Criminals have attempted to grow moon sugar grasses in Vvardenfell, without success." coasts and estuaries. Used as a spice in
Moon sugar is an illegal drug in Morrowind, which counts as contraband that is confiscated by guards. Merely having any in your possession will cause most vendors to refuse to do business with you; you'll have to put it down if you want access to any goods or services. A notable exception are any vendors who are Khajiits (in fact, the only ones who buy moon sugar are Baissa and J'Rasha in Vivec, as well as Ajira and Ra'Virr in Balmora). There are also creature merchants who don't mind if you're carrying moon sugar, but Creeper and the Mudcrab merchant don't deal in ingredients, and the other Creature Merchants all have no gold with which to purchase things (and are hostile anyway).
Moon sugar is also used to make the drug skooma, which is likewise illegal. (Note that this refers to game lore only. You cannot actually make Skooma yourself in the game without mods.) There are no respawning sources of moon sugar, though several vendors do sell limited supplies (however, if they are not Khajiit, they may then refuse to do business with you just as if you'd brought Moon Sugar from other places). Most commonly, moon sugar is smuggled in through caves on the Bitter Coast, and is often used as currency among bandits. The best place to find moon sugar is in the hulls of the larger ships, which can contain up to 60 units of moon sugar in crates and sacks.
NPCs carrying moon sugar:
Oddly, none of them are Khajiit, despite Khajiit fondness (or weakness) for the stuff. Rabinna has several units in her, but these are scripted to only appear in her inventory if she dies.
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