The Spiced Sand is a block added by Santa's Toys. When an entity come in contact with it, they will be set on fire, given the Slowness effect, and take a configurable amount of damage, which defaults to 3 () points. Right-clicking the block with an empty hand will cause the same effects without slowness. This block is intended to be used for farming entity drops.
Spiced Sand can be found very, very rarely in the Nether. It has a 50% chance to spawn in each chunk, but will only spawn a single block per chunk. It is only found in Soul Sand veins.