Granulate means to form or reduce into grains. You've probably seen the word on a box of granulated sugar and not thought twice about the fact that, besides its granular form, sugar exists as a liquid and also inside sugar cane.
Sugar, of course, is not a grain. A grain is rice, wheat, quinoa, corn––seeds that form the basis of most people's diets. Sugar forms grains when it's refined, appearing in its crystallized form to have a grain-like, or granulated, appearance.