Minecraft wiki entry for Gathering_resources_on_peaceful_difficulty, associated text: Sugar can be obtained either by crafting with sugar cane, by killing witches, or crafting with honey bottle. Although the second option is not available on Peaceful difficulty, the first and third are. Simply put 1 sugar cane in the crafting area in your inventory or on a crafting table, and you will get 1 sugar. Put 1 honey bottle in a crafting table, in order to receive 3 sugar and an empty glass bottle.