This article explores the interplay between business elites and the Argentine state in shaping social policy from the late nineteenth century until 1943, focusing on the sugar industry in Jujuy. It asks why sugar industrialists introduced welfare measures in their mills during the 1930s and what social conditions shaped their choices. We argue that limited assistance initiatives, introduced following the Great Depression, allowed mill owners to justify tariff protection while reinforcing their dominance over workers and curbing union influence. These measures, rooted in the sugar elites’ control of provincial politics and sustained intervention in the state apparatus, exemplify early forms of private–public cooperation in welfare provision. By tracing the evolution of state–business interaction in social provision, the article demonstrates how local industries shaped welfare regimes before the rise of Peronism, offering new insights into the diversity of policy responses and social realities in Argentina and Latin America.