Is the drug trade in Morrowind organized to a certain degree? Or is it just something along the lines of a person selling their own moon sugar or skooma?
Yes, it is quite organized. As has been said the major player behind this is the Cammona Tong and its head, Orvas Dren. They control most illegal trade in Vvardenfell (if not more of Morrowind), including Moon Sugar, Skooma and possibly Dwemer artifacts (that one I'd have to double-check, though at the time of Morrowind they were also working on smuggling the Ash Statues). There are minor dealers in various places outside the Tong, but its only natural that you can't ever get a complete monopoly on something.