A granular jet falling out of a funnel shaped container, subjected to small vertical vibrations, develops an instability farther downstream as may happen for ordinary liquid jets. Our results show that this instability is reminiscent of the Rayleigh-Plateau capillary instability leading to breakup of the jet at large scales. The first stages of this instability are captured in detail allowing a determination of the dispersion relation. Surface tensions measured in this unstable regime (of the order of mN=m) are in agreement with previously reported measurements carried out at much smaller scales. This instability and the breakup of the jet can be inhibited when the effect of the surrounding medium (air) is reduced by enclosing the jet in an evacuated chamber, showing that the effective surface tension measured is the result of a strong interaction with the surrounding air.