you can't use red sugar cane the same way as the green sugar cane.

sugar is attainable from beets in a pot

It's not supposed to be fully interchangeable. The tfc papyrus replaces minecraft sugar cane for paper making.

I was more looking at sugar making

Sugarcane can be used in the barrel to make sugar as well as beets boiled in salt water. The latter is made a bit easier with the vat ... would still recommend sugarcane in the barrel nonetheless.

but can sugar be processed via create?

have you checked ? :D there might be recipes for it :)... while I don't like this type of reply have you checked jei before asking ? :)