They don't use or export sugar in Brazil?
Yes they do, but it did not effect the food supply like the corn ethanol has in the US.
IIRC (when I was in 5th grade, someone brought in a few pieces of sugar cane to show the class -- 5th grade was a long time ago!), sugar cane is about an inch or so thick, and it's the inside that's refined into sugar. The outer woody (again IIRC) husk or rind or whatever I think is what Brazil makes into ethanol.
In any case, from what I read, sugar cane is a much better source for ethanol -- produces far more energy per pound (or whatever the appropriate measure is) than corn.