Most of the uses of moon-sugar are benign, and just satisfy the Catfolk’s insatiable craving for sweets. It’s only when moon-sugar is refined into the dangerous narcotic skooma that it becomes a problem. No government approves of skooma.
Hehe I wish this stuff would be treated like Muon Gold and other spices were in SWG, they give you great buffs but if an NPC guard catches you with them you are in trouble. Loved that system.
I am sure it will be mentioned in the game in conversations with NPCs. but I am also sure you wont be able buy or sell it in a MMO game. It would be a PR disaster for Zenimax.
This is one of those those instances of lore being changed for the game. I'm hoping its a miscommunication. Another forum-goer posted that this might be an attempt to play down the drugs so Zenimax Online can get a "T" rating.