Sugarcane (aka reeds or bamboo) is a block in Minecraft used to make sugar and paper. They can only grow near water.
As a crafting ingredient Edit
= 1 Sugar
|Sugar Cane||Sugar Cane||Sugar Cane|
= 3 Paper
Sugar Cane is used to make sugar and paper. It is also used to make underwater air plugs, since it can grow underwater, and makes an air pocket if it is 2 blocks tall.