Dreamy state produced by nectar (6)

I believe the answer is:
trance
'dreamy state' is the definition.
'trance' can be an answer for 'state' (trance is a kind of state). I'm unsure of the 'dreamy' bit.
'by nectar' is the wordplay.
'nectar' can be anagrammed to 'TRANCE'.
However, I'm not clear how the anagram is indicated.
'produced' is the link.
Can you help me to learn more?
(Other definitions for trance that I've seen before include "Dream state" , "Deep sleeplike state" , "Dazed state" , "Dream-like state" , "Canter about a daydream" .)
